9
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2
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C
OPEN POWER
FOR A BRIGHTER
FUTURE.
WE EMPOWER SUSTAINABLE PROGRESS.
CONSOLIDATED ANNUAL REPORT 2019
CONSOLIDATED
ANNUAL
REPORT 2019
Enel is Open Power
O p e n Po w e r
P u r p o s e
O p e n Po w e r f o r
a b r i g h t e r f u t u r e .
We e m p o w e r
s u s t a i n a b l e p r o g r e s s .
P V
CPPo s i t i o n i n g
M
V i s i o n
O p e n Po w e r t o t a c k l e
s o m e o f t h e w o r l d ’s
b i g g e s t c h a l l e n g e s .
Va l u e s
Tr u s t
P r o a c t i v i t y
R e s p o n s i b i
I n n o v a t i o n
i t y
l
V
P r i n c i p l e s o f c o n d u c t
l y a c t i v i t i e s a n d t a k e
• M a k e d e c i s i o n s i n d a i
i t y f o r t h e m .
i n g t o c o l
l
l
l a b o r a t e
l
• F o l
r e s p o n s i b i
• S h a r e i n f o r m a t i o n , b e i n g w i
a n d o p e n t o t h e c o n t r i b u t i o n o f o t h e r s .
l o w t h r o u g h w i t h c o m m i t m e n t s , p u r s u i n g
a c t i v i t i e s w i t h d e t e r m i n a t i o n a n d p a s s i o n .
• C h a n g e p r i o r i t i e s r a p i d l y i f t h e s i t u a t i o n e v o l v e s .
• G e t r e s u l t s b y a i m i n g f o r e x c e l
• A d o p t a n d p r o m o t e s a f e b e h a v i o r a n d m o v e
p r o - a c t i v e l y t o i m p r o v e c o n d i t i o n s f o r h e a l t h ,
l e n c e .
l - b e i n g .
l , r e c o g n i z i n g a n d
l
i t y e t c . ) .
s a f e t y a n d w e l
a g e , d i s a b i
i t i e s , p e r s o n a l
• W o r k f o r t h e i n t e g r a t i o n o f a l
l e v e r a g i n g i n d i v i d u a l d i v e r s i t y ( c u l t u r e , g e n d e r,
• W o r k f o c u s i n g o n s a t i s f y i n g c u s t o m e r s a n d / o r
c o - w o r k e r s , a c t i n g e f f e c t i v e l y a n d r a p i d l y.
• P r o p o s e n e w s o l u t i o n a n d d o n o t g i v e u p
w h e n f a c e d w i t h o b s t a c l e s o r f a i
• R e c o g n i z e m e r i t i n c o - w o r k e r s a n d g i v e
f e e d b a ck t h a t c a n i m p r o v e t h e i r c o n t r i b u t i o n .
l u r e .
M i s s i o n
• O p e n a c c e s s t o e l e c t r i c i t y f o r m o r e
• O p e n t h e w o r l d o f e n e r g y t o n e w
p e o p l e .
• O p e n u p t o n e w u s e s o f e n e r g y.
t e ch n o l o g y.
• O p e n u p t o n e w w a y s o f m a n a g i n g
e n e r g y f o r p e o p l e .
• O p e n u p t o n e w p a r t n e r s h i p s .
Consolidated Annual Report 2019
V
Va l u e s
Tr u s t
P r o a c t i v i t y
R e s p o n s i b i
I n n o v a t i o n
i t y
l
V i s i o n
O p e n Po w e r t o t a c k l e
s o m e o f t h e w o r l d ’s
b i g g e s t c h a l l e n g e s .
Enel is Open Power
O p e n Po w e r
P u r p o s e
O p e n Po w e r f o r
a b r i g h t e r f u t u r e .
We e m p o w e r
s u s t a i n a b l e p r o g r e s s .
M i s s i o n
• O p e n a c c e s s t o e l e c t r i c i t y f o r m o r e
• O p e n t h e w o r l d o f e n e r g y t o n e w
• O p e n u p t o n e w u s e s o f e n e r g y.
• O p e n u p t o n e w w a y s o f m a n a g i n g
t e ch n o l o g y.
e n e r g y f o r p e o p l e .
• O p e n u p t o n e w p a r t n e r s h i p s .
p e o p l e .
M
P V
CPPo s i t i o n i n g
l e n c e .
l a b o r a t e
P r i n c i p l e s o f c o n d u c t
l y a c t i v i t i e s a n d t a k e
• M a k e d e c i s i o n s i n d a i
i t y f o r t h e m .
i n g t o c o l
• S h a r e i n f o r m a t i o n , b e i n g w i
r e s p o n s i b i
a n d o p e n t o t h e c o n t r i b u t i o n o f o t h e r s .
l o w t h r o u g h w i t h c o m m i t m e n t s , p u r s u i n g
a c t i v i t i e s w i t h d e t e r m i n a t i o n a n d p a s s i o n .
• C h a n g e p r i o r i t i e s r a p i d l y i f t h e s i t u a t i o n e v o l v e s .
• G e t r e s u l t s b y a i m i n g f o r e x c e l
• A d o p t a n d p r o m o t e s a f e b e h a v i o r a n d m o v e
p r o - a c t i v e l y t o i m p r o v e c o n d i t i o n s f o r h e a l t h ,
l , r e c o g n i z i n g a n d
s a f e t y a n d w e l
• W o r k f o r t h e i n t e g r a t i o n o f a l
l e v e r a g i n g i n d i v i d u a l d i v e r s i t y ( c u l t u r e , g e n d e r,
• W o r k f o c u s i n g o n s a t i s f y i n g c u s t o m e r s a n d / o r
a g e , d i s a b i
c o - w o r k e r s , a c t i n g e f f e c t i v e l y a n d r a p i d l y.
• P r o p o s e n e w s o l u t i o n a n d d o n o t g i v e u p
w h e n f a c e d w i t h o b s t a c l e s o r f a i
• R e c o g n i z e m e r i t i n c o - w o r k e r s a n d g i v e
f e e d b a ck t h a t c a n i m p r o v e t h e i r c o n t r i b u t i o n .
i t i e s , p e r s o n a l
i t y e t c . ) .
l - b e i n g .
• F o l
l u r e .
l
l
l
l
Future: from vision
to action
Consolidated Annual Report 2019
Dear shareholders and stakeholders,
Our industrial model fully integrates sustainability into our business strategy. In 2019, this enabled us to continue our
growth, confirming us as a leader in the main facets of the energy transition.
We are the largest private distributor of electricity in the world, with 73 million end users in a variety of the planet’s large
urban areas, and we are the leading private operator in renewable energy globally, with 46 GW of managed capacity(1).
Among private companies, we have the largest customer base in the world in the retail segment as well, with around
70 million customers, and we are well positioned to seize the opportunities created by the trend towards electrification.
Our solid performance in recent years has strengthened the market’s confidence in us. During the year, Enel’s stock
price posted a gain of 40%, exceeding €7, outperforming the Italian index (FTSE-MIB: +28%) and the sector index
(Euro STOXX Utilities: +22%) and has also been included in the STOXX Europe 50 index, which brings together the fifty
largest companies in Europe.
The macroeconomic environment
In 2019, the global economic growth was sluggish, continuing the slowdown that had already begun in the 2nd Half of
2018. Trade tensions between the United States and China, together with geo-political strains and the persistent clima-
te of uncertainty about the outcome of the Brexit negotiations, impacted investment decisions until the final months
of the year. Responding to the deteriorating global environment, central banks altered their monetary policy stances,
with the Fed and the ECB aggressively cutting interest rates and restoring their quantitative easing policies.
2019 was also marked by a further deceleration in the Chinese economy, while in the United States the economy con-
tinued to be supported by resilient domestic demand, with private consumption still strong.
Growth in the euro area was modest, averaging +1.2%. This performance mainly reflected the decline in output attribu-
table to the weakness of non-European demand, partially offset by a relatively healthy domestic market.
In Latin America, economic conditions in 2019 were weaker than in 2018 but the picture was mixed, with countries
such as Colombia demonstrating a solid foundation, while others were more exposed to the volatility of the macroe-
conomic and political context, including Argentina. Brazil posted a strong recovery in economic activity in the last two
quarters of 2019, but the slowdown in the Chinese economy and pressures on commodity prices curbed GDP growth.
During 2019, the oil market was buffeted by volatility, with the price of Brent fluctuating up and down. In general, prices
were lower than last year, indicating a structural weakness in global demand.
The gas market was characterized by a global surplus of LNG demand, which diverted flows to Europe, causing stocks
to rise to record levels and a sharp drop in prices.
The decrease in the price of gas in combination with strains on the price of CO2, which was especially volatile in 2019,
led to a weakening of the competitiveness of coal, especially in the thermal generation sector, which was reflected in
a drop in demand and the price of fuel.
At the end of 2019, the initial cases of the coronavirus pandemic (COVID-19) were registered in Wuhan (China), placing
great strain on the social and economic systems of many countries around the world.
Performance
In 2019, the Enel Group continued its growth, hitting all the targets we had set ourselves, despite the deterioration
in the competitiveness of conventional generation. This prompted us to write down almost all the Group’s coal-fired
plants and contributed to the continuing instability in some Latin American economies.
More specifically, the Group ended the year with ordinary EBITDA of €17.9 billion, an increase of 10.8% compared
with €16.2 billion in 2018, outperforming our guidance to investors. Net ordinary income, the aggregated on which the
dividend is calculated, reached €4.8 billion, an increase of 17% compared with the previous year. The dividend for 2019
is about €0.33 per share, an increase of 17% compared with the €0.28 paid in 2018 and the minimum dividend guaran-
(1) In addition to installed capacity, this includes that managed by associates or joint ventures (about 3.7 GW).
Letter to shareholders and other stakeholders
teed to shareholders. The ratio of FFO to net debt, an indicator of our financial strength, reached 26% at the end of the
year, exceeding the target set for 2019. Net debt amounted to €45.2 billion, lower than the forecast announced to the
market, although higher than the previous year due to the application of new accounting standards, the extraordinary
transactions completed during the period and the increase in investment for growth.
Main developments
On the generation front, Enel reached a new record in 2019, building 3,029 MW of new renewable capacity globally,
thanks to a solid, well-diversified and continuously expanding project pipeline. Consolidated installed renewable capaci-
ty reached 42 GW and exceeded thermal generation capacity, which declined to 39 GW. This is an important step in the
Group’s journey towards a cleaner and more sustainable energy mix, which is also underscored by the rapid reduction
in specific CO2 emissions, which fell to 296 g/kWheq (-20% compared with 2018). The target set in 2015 to reduce direct
emissions below 350 g/kWheq was thus achieved a year in advance.
The Group continued digitalizing its grids, with an increase of 5.9 millions in the number of second generation smart
meters installed (for a total of 13.1 millions) and the development of innovative projects such as the Puglia Active
Network (Italy) and Urban Futurability (São Paulo, Brazil). These projects are aimed at improving the quality and resilien-
ce of power grids, thanks to the use of technologies such as distributed sensors, artificial intelligence and 3D modeling.
During the year, the installation of public charging infrastructure for electric vehicles continued in Italy, Spain and Ro-
mania and interoperability agreements were reached, giving Enel X customers access to a network of 79,565 charging
points. The Group also confirmed its leadership in the energy transition, supporting the electrification of public tran-
sport with the supply of charging stations for electric buses in Chile and Colombia. We have also confirmed our ability
to assist customers in using energy more efficiently, bringing the capacity of active demand management services to
6.3 GW and the total capacity of batteries installed with industrial customers or directly connected to distribution and
transmission grids to 110 MW.
An important milestone in the digital transformation was reached in April 2019 with the completion of the migration of
the Group’s data and applications to the cloud. Enel is the first of the world’s major utilities to have achieved this goal,
with enormous advantages in terms of flexibility, speed, safety, resilience as well as efficiency. This step is also crucial
as a technological enabler of new business approaches, such as platform models, which will be increasingly relevant
in Enel’s near future.
Among extraordinary operations, the sale of the Reftinskaya coal-fired plant in Russia (3.8 GW) by the subsidiary Enel
Russia to JSC Kuzbassenergo, a subsidiary of the Siberian Generating Company, was completed.
Enel Green Power North America restructured the joint venture with General Electric in the United States through the
acquisition of 100% of seven geothermal, wind and solar generation plants, for a total of 650 MW, and the sale of 80%
of a 785 MW portfolio of US wind farms to CalPERS.
In Brazil, acting through our subsidiary Enel Green Power Brasil Participações Ltda, the Group finalized the sale of
100% of three fully operational renewable plants with a total capacity of 540 MW to the Chinese company CGN Ener-
gy International Holdings Co. Limited.
In Italy, the Mercure biomass plant was sold to F2i SGR, an operation that was part of an agreement between the Enel
Group and F2i SGR for the sale of the entire portfolio of biomass plants in Italy.
Finally, in the 1st Half of 2019, using a total return swap (TRS) transaction on Enel Américas shares, the Group increa-
sed its stake in that company by 5% and now holds an interest of about 60%.
With regard to finance, after the third €1 billion green bond issued in January, the year culminated with the issue of
two SDG-Linked bonds, the first bonds in the world linked directly to the Sustainable Development Goals (SDGs) set
by the United Nations with its 2030 Agenda. The two operations raised a total of €3.9 billion on the American and Eu-
ropean markets, attracting great interest from the international financial community. Oversubscribed by an average of
3.6 times supply and a cost discount of up to 20% compared with conventional financing instruments, the operation
led to Enel winning the “ESG Issuer of the Year” award from International Financing Review.
Strategy and forecasts for 2020-2022
The world of utilities is experiencing an era of profound transformation, mainly driven by the challenge of decarbonizing
the energy sector. The progressive shift of generation from fossil fuels to renewable sources, together with the accele-
Consolidated Annual Report 2019 ration in the electrification of final consumption, will be the main trends in the energy transition. Energy infrastructures
and digital platforms will be key factors in enabling this transition and achieving the United Nations’ Sustainable Deve-
lopment Goals. The sustainable strategy and the integrated business model developed in recent years have allowed
the Group to constantly create value and will allow us to benefit from the opportunities emerging from this transition,
while limiting the related risks.
Thanks to a development model based on the organic build-out of renewable generation assets that gives us great
flexibility in the use of capital, the Group is capable of responding swiftly to any unexpected scenario changes that
could be triggered by the pandemic that has been spreading around the world in these last few months.
In November 2019, Enel presented the 2020-2022 Strategic Plan, which, while confirming the strategic direction alre-
ady set explicitly integrates the SDG objectives into our financial strategy.
The growth path outlined in the Plan shows a steady acceleration in performance, with a target for the Group’s ordinary
EBITDA of €20.1 billion in 2022, compared with €17.9 billion in 2019 (+12%).
In the next three years, the Group expects gross organic capex of around €28.7 billion (an increase of 11% compared
with the previous plan), of which more than 90% is attributable to the four SDGs on which the strategy is based: SDG
7 - Affordable and Clean Energy; SDG 9 - Industry, Innovation and Infrastructure; SDG 11 - Sustainable Cities and Com-
munities; and SDG 13 - Climate Action.
Of total organic investment, more than €12.5 billion will be dedicated to the construction and maintenance of re-
newable generation plants, with renewable capacity to reach 60 GW by 2022. At the same time, the Group will conti-
nue to progressively eliminate coal-fired generation, with a 74% decrease in such output as early as 2022.
This strategy is consistent with Enel’s commitment to the fight against climate change, which was further strengthe-
ned in September 2019 with the setting of a new target: reducing direct CO2 emissions per kWh by 70% by 2030,
compared with 2017 levels. This target has been certified by the Science Based Targets initiative, the world’s most
authoritative initiative to support the definition of science-based targets that encourage companies to support the
transition towards a zero-emission economy, in line with the objectives of the Paris Agreement. In parallel, Enel has set
another new target, also certified by the Science Based Targets initiative, namely to reduce indirect emissions associa-
ted with the consumption of gas by Enel end users by 16% by 2030.
With regard to grids, investments of around €11.8 billion are planned, with the aim of further improving their resilience,
quality and efficiency, thanks in part to the use of the new generation of smart meters, which in 2022 will number al-
most 29 millions, and the adoption of a platform business model that will make operations in all the countries in which
we operate more effective.
Finally, the Group will invest a total of €2.3 billion in the retail segment and in Enel X to strengthen the central role
of the customer, gaining an advantageous position in view of the growing electrification of energy consumption. The
development of global platforms and ecosystems will allow us to make new services available to customers, enabling
further creation of value for the Group. By 2022, there will be around 35 million customers in the free market, with 10.1
GW of active demand management capacity and 736 MW of installed electricity storage.
The soundness of our business model and the flexibility noted above in the use of cash flows in organic investment
enable us to confirm the dividend policy based on a pay-out of 70% of the Group’s net ordinary income and to extend
the minimum dividend per share for the entire 2020-2022 period, with Enel expecting to use its profits in 2020-2022 to
pay the greater between a) a dividend per share based on a pay-out of 70%; and b) a minimum dividend per share of
€0.35, €0.37 and €0.40 respectively.
At a moment of great instability in the global scenario, we face the future with confidence, drawing strength from what
we have built and the value of our people.
Patrizia Grieco
Chairman of the Board of Directors
Francesco Starace
Chief Executive Officer and General Manager
Letter to shareholders and other stakeholders
REPORT ON OPERATIONS
1.
2.
3.
Enel Group
Governance
Strategy
& Risk
Management
Highlights - Group
13
Enel shareholders
20
Reference scenario
Highlights - Business Lines
14
Corporate boards
21
Group strategy
Business model
Enel around the world
The Enel corporate
governance system
16
17
Enel organizational model
Incentive system
Values and pillars
of corporate ethics
Risk management
22
26
28
30
34
45
57
Letter to shareholders
and other stakeholders
5
Consolidated Annual Report 2019
CONSOLIDATED FINANCIAL
STATEMENTS
4.
5.
6.
Performance
& Metrics
Outlook
Consolidated
financial
statements
Definition of performance
indicators
Performance of the Group
Analysis of the Group’s
financial position
and financial structure
Enel shares
People centricity
76
79
91
97
100
The innovation ecosystem
106
Value created
for stakeholders
Results by business area
108
109
Significant events in 2019
145
Regulatory and rate issues
149
Outlook
158
Consolidated financial
statements
Notes to the financial
statements
Declaration of the Chief
Executive Officer and
the officer responsible
Reports
166
173
332
334
- Report of the Board of Statutory
Auditors to the Shareholders’
Meeting of Enel SpA
- Report of the Audit Firm
334
350
Attachments
358
- Subsidiaries, associates
and other significant equity
investments of the Enel Group
at December 31, 2019
358
10
Relazione Finanziaria Annuale 2019 1.
ENEL GROUP
REPORT
ON OPERATIONS
12
Consolidated Annual Report 2019
Highlights
Highlights -
Group
Revenue
(millions of euro)
Gross operating margin
(millions of euro)
Ordinary gross
operating margin
(millions of euro)
17,704
17,905
16,351
8.3%
16,158
10.8%
80,327
75,575
6.3%
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
18,000
15,000
12,000
9,000
6,000
3,000
0
2018
2019
2018
2019
2018
2019
Net income attributable
to shareholders of the Parent Company
(millions of euro)
Ordinary net income attributable
to shareholders of the Parent Company
(millions of euro)
Net financial debt
(millions of euro)
4,789
5,000
4,000
3,000
2,000
1,000
0
2,174
-54.6%
4,767
4,060
17.4%
45,175
41,089
9.9%
50,000
40,000
30,000
20,000
10,000
0
2018
2019
2018
2019
2018
2019
Cash flows from
operating activities
(millions of euro)
Capital expenditure on
property, plant and equipment
and intangible assets (1)
(millions of euro)
Employees
(no.)
Injuries
“High Consequence” Enel
(no.)
11,075
11,251
1.6%
12,000
10,000
8,000
6,000
4,000
2,000
0
68,253
-1.5%
8,152
22.0%
12,000
10,000
8,000
6,000
4,000
2,000
0
80,000
70,000
69,272
9,947
60,000
50,000
40,000
30,000
20,000
10,000
0
100
90
80
70
60
50
40
30
20
10
0
5
3
2018
2019
2018
2019
2018
2019
2018
-40%
2019
(1) The figure for 2019 does not include
€4 million regarding units classified
as “held for sale” (€378 million in 2018).
Highlights - Group
13
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Highlights
Highlights -
Business Lines
Total net efficient
installed capacity
(GW)
Net efficient installed capacity -
(Composition) (1)
(%)
Additional efficient installed
renewable capacity
(GW)
85.6
84.3
-1.5%
100
90
80
70
60
50
40
30
20
10
0
100
90
80
70
60
50
40
30
20
10
0
54%
50%
46%
8.7%
50%
4
3
2
1
0
Traditional
sources
Renewable
sources
3.58
2.68
33.6%
2018
2019
2018
2019
2018
2019
(1) The percentage of net efficient renewable installed
capacity is the ratio (in percentage terms) of installed
renewable generation capacity to total installed capacity.
Net electricity generation
(TWh)
Net electricity generation -
(Composition)
(TWh)
CO2
(Specific CO2 emissions g/kWheq)
250
200
150
100
50
0
250.3
229.1
-8.5%
151.4
129.7
500
400
300
200
100
98.9
0.5%
99.4
Traditional
sources
0
Renewable
sources
2018
2019
2018
2019
369
296
-19.8%
2018
2019
Charging points
(no.)
Demand Response
(MW)
79,565
48,967
62.5%
6,215
6,297
1.3%
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
Storage
(MW)
120
100
80
60
40
20
0
110
70
57.1%
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
14
End users
(millions)
72.9
73.3
0.4%
End users with
active smart meters
(millions)
43.8
44.7
2.1%
2018
2019
2018
2019
Electricity distribution
and transmission grid
(thousands of km)
2,226
2,230
0.2%
Electricity transported
on Enel’s distribution grid
(TWh)
504
484
4.1%
70
60
50
40
30
20
10
0
2,500
2,000
1,500
1,000
500
0
500
400
300
200
100
0
2018
2019
2018
2019
G
l
o
&
b
N
a
l In
e
t
w
fra
o
rk
s
structure
T
r
a
d
in
g
R etail
300
250
200
150
100
50
0
l
G
E
n
e
l
X
Retail customers
(millions)
Retail customers - free market
(millions)
Electricity sold by Enel
(TWh)
295.4
301.7
2.1%
71.1
69.9
-1.7%
21.5
22.8
6.1%
70
60
50
40
30
20
10
0
al
b
o
wer
n
Global Po
G eneratio
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
Consolidated Annual Report 2019
Highlights
Total net efficient
installed capacity
(GW)
100
85.6
84.3
-1.5%
Net efficient installed capacity -
(Composition) (1)
Additional efficient installed
renewable capacity
(GW)
54%
50%
3.58
2.68
33.6%
46%
8.7%
50%
Traditional
sources
Renewable
sources
(1) The percentage of net efficient renewable installed
capacity is the ratio (in percentage terms) of installed
renewable generation capacity to total installed capacity.
2018
2019
2018
2019
2018
2019
Net electricity generation
Net electricity generation -
(TWh)
(Specific CO2 emissions g/kWheq)
250.3
229.1
-8.5%
(Composition)
(TWh)
151.4
4
3
2
1
0
CO2
500
400
300
200
100
129.7
369
296
-19.8%
98.9
0.5%
99.4
Traditional
sources
0
Renewable
sources
2018
2019
wer
n
Global Po
G eneratio
2018
2019
2018
2019
Charging points
Demand Response
(MW)
79,565
48,967
62.5%
6,215
6,297
1.3%
Storage
(MW)
120
100
80
60
40
20
0
110
70
57.1%
90
80
70
60
50
40
30
20
10
0
250
200
150
100
50
0
(no.)
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
(%)
100
90
80
70
60
50
40
30
20
10
0
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
End users
(millions)
End users with
active smart meters
(millions)
72.9
73.3
0.4%
70
60
50
40
30
20
10
0
43.8
44.7
2.1%
2018
2019
2018
2019
Electricity distribution
and transmission grid
(thousands of km)
Electricity transported
on Enel’s distribution grid
(TWh)
504
484
4.1%
2,226
2,230
0.2%
2,500
2,000
1,500
1,000
500
0
500
400
300
200
100
0
2018
2019
2018
2019
G
l
&
o
b
N
a
l In
e
t
w
o
fra
rk
s
structure
al
b
o
l
G
T
r
a
d
in
g
R etail
E
n
e
l
X
Retail customers
(millions)
Retail customers - free market
(millions)
Electricity sold by Enel
(TWh)
295.4
301.7
2.1%
71.1
69.9
-1.7%
70
60
50
40
30
20
10
0
21.5
22.8
6.1%
300
250
200
150
100
50
0
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019
Highlights - Business Lines
15
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
Modello di Business
Business model
The Enel Group is committed to developing its business model
In order to be able to effectively face all the risks and seize all
in line with the objectives of the Paris Agreement (COP21), i.e.
the opportunities that the rapidly changing energy sector pre-
to limit the increase in global average temperature to less than
sents, Enel’s business model has defined roles for all of the
2 °C above pre-industrial levels and to do everything possible
Group’s major organizational units. Each Country operates in its
to limit the increase to 1.5 °C. In 2019, Enel officially renewed
geographical area in a matrix relationship with the broader Glo-
this commitment, responding to the request for action by the
bal Business Lines, managing activities such as relations with
United Nations by signing a commitment to take action to limit
local communities, regulatory authorities, retail markets, local
the increase in global temperatures to 1.5 °C and to achieve zero
communication and so on. The mission of each business can be
emissions by 2050.
summarized as follows.
Global Power Generation: the Group operates
through this new integrated Business Line formed
in 2019 to accelerate the energy transition, conti-
nuing to increase investments in new renewable
energy capacity, and manages the decarboniza-
tion of its generation mix and the countries in
which it operates, always aiming to ensure the
safety and capacity of electrical systems.
Global Power
G eneration
Global Infrastructure & Networks: in developing
and operating infrastructure that enables the
energy transition, the Group ensures the reliabi-
lity in the supply of energy and the quality of
service to communities through resilient and
leveraging efficiency,
flexible networks,
technology and digital innovation, and ensu-
ring appropriate returns on investment and
cash generation.
G
l
&
o
b
N
a
e
t
w
l Infra
o
r
k
s
structure
al
b
o
l
G
T
r
a
d
i
n
g
Enel X: this
Business Line is enabling
the energy transition by acting as
an accelerator for electrification and
decarbonization of customers, helping
them to use energy more efficiently,
leveraging the assets of the Enel Group
through the delivery of innovative services.
E
n
e
l
X
R etail
Retail: through its
sales relationships with end
users, the Group interacts locally
with millions of families and compa-
nies. Thanks to our technology, the
platform model enables us to improve
customer satisfaction and the customer
experience, while at the same time achieving
ever higher levels of efficiency. The business
units optimize the supply of power to their
customer base, maximizing the value generated
by that resource and fostering long-term
relationships with customers.
Global Trading: this Business Line manages our combined margin on generation and sales as
a single portfolio in which Generation and Retail operations are always balanced effectively.
Taking advantage of the synergies between the different bu-
impacts, meet the needs of customers and the local communi-
siness areas, acting through the lever of innovation, and con-
ties in which it operates and ensure high standards of safety for
ducting its operations on the basis of Open Power principles, the
employees and suppliers.
Enel Group seeks to develop solutions to reduce environmental
16
Consolidated Annual Report 2019
Enel around the world
The Enel Group has a presence in 48 countries on the various continents, with more than 850 subsidiaries.
The following map shows the distribution of the Enel Group across the globe.
Localizzazione geografica di Enel
Il Gruppo ENEL è presente in 48 paesi nei diversi continenti con oltre 850 società controllate.
Di seguito la distribuzione geografica:
Enel around the world
17
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 18
Relazione Finanziaria Annuale 2019 2.
GOVERNANCE
REPORT
ON OPERATIONS
19
Enel shareholders
At December 31, 2019, the fully subscribed and paid-up sha-
unchanged compared with that registered at December 31,
re capital of Enel SpA (“Enel” or the “Company”) totaled
2018. Note that a total of 1,549,152 treasury shares were ac-
€10,166,679,946, represented by the same number of ordi-
quired in 2019.
nary shares with a par value of €1.00 each. Share capital is
Significant shareholders
At December 31, 2019, based on the shareholders register
shareholders with an interest of greater than 3% in the Com-
and the notices submitted to CONSOB and received by the
pany’s share capital included the Ministry for the Economy
Company pursuant to Article 120 of Legislative Decree 58
and Finance (with a 23.585% stake) and Capital Research and
of February 24, 1998, as well as other available information,
Management Company (with a 5.029% stake).
Composition of shareholder base
Since 1999, Enel has been listed on the Mercato Telematico
of the share capital (compared with 10.5% at December 31,
Azionario organized and operated by Borsa Italiana SpA. Enel’s
2018), while investors who have signed the Principles for
shareholders include leading international investment funds,
Responsible Investment represent 43% of the share capital
insurance companies, pension funds and ethical funds.
(compared with 39.1% at December 31, 2018).
The number of Environmental, Social and Governance (ESG)
investors in Enel has been rising steadily: at December 31,
2019, socially responsible investors (SRIs) held around 10.8%
Shareholder composition at December 2019
100%
23.6%
16.1%
Ministry for the Economy
and Finance
Retail
investors
60.3%
Institutional
investors
20
Consolidated Annual Report 2019 Corporate boards
BOARD OF DIRECTORS
Chief Executive Officer
and General Manager
Francesco Starace
Secretary
Silvia Alessandra Fappani
Chairman
Patrizia Grieco
Directors
Alfredo Antoniozzi
Alberto Bianchi
Cesare Calari
Paola Girdinio
Alberto Pera
Anna Chiara Svelto
Angelo Taraborrelli
Gender diversity on the Board of Directors (no.)
Age diversity on the Board of Directors (%) <30
Age diversity on the Board of Directors (%) 30-50
Age diversity on the Board of Directors (%) >50
2019
2018
3
3
11%
89%
100%
BOARD OF STATUTORY AUDITORS
Auditors
Romina Guglielmetti
Claudio Sottoriva
Chairman
Barbara Tadolini
Alternate auditors
Maurizio De Filippo
Francesca Di Donato
Piera Vitali
AUDIT FIRM
EY SpA
Corporate boards
21
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The Enel corporate governance
system
The corporate governance system of Enel SpA (“Enel” or the
ders over the long term, taking into account the social impor-
“Company”) complies with the principles set forth in the Cor-
tance of the Group’s business operations and the consequent
porate Governance Code for listed companies (the “Corporate
need, in conducting such operations, to adequately consider
Governance Code”), as amended in July 2018, adopted by the
all the interests involved.
Company, and is also inspired by international best practice.
In compliance with Italian legislation governing listed compa-
The corporate governance system adopted by Enel and its
nies, the Group’s organization comprises the following bodies.
Group is essentially aimed at creating value for the sharehol-
SM
SHAREHOLDERS'
MEETING
Audit Firm
EY SpA
BOD
BOARD
OF DIRECTORS
BSA
BOARD
OF STATUTORY
AUDITORS
CRC
CONTROL
AND RISK COMMITTEE
NCC
NOMINATION
AND COMPENSATION
COMMITTEE
CGSC
CORPORATE
GOVERNANCE
AND SUSTAINABILITY
COMMITTEE
RPC
RELATED PARTIES
COMMITTEE
22
Consolidated Annual Report 2019 It is charged with deciding, among other things, in either ordinary or extraordinary session:
> the appointment and removal of the members of the Board of Directors and the Board of Statutory
Auditors and their compensation and undertaking any stockholder actions;
> the approval of the financial statements and the allocation of profit;
Shareholders’
Meeting
> the purchase and sale of treasury shares;
> remuneration policy and its implementation;
> share ownership plans;
> amendments to the bylaws;
> mergers and demergers;
> the issue of convertible bonds.
Board of Directors
14
meetings held
by the Board
in 2019, in 8 of
which it addressed
issues connected
with climate
and their impact
on strategies,
operations and
sustainability
> It is charged with managing the Company and is therefore vested by the bylaws with the broadest
powers for the ordinary and extraordinary management of the Company, and specifically has the
power to carry out all the actions it deems advisable to implement and achieve the corporate pur-
pose.
> With regard to the issue of sustainability(1), including climate change, it is responsible for examining
and approving the corporate strategy, including the Group’s annual budget and Business Plan, which
incorporate the main objectives and actions that the Company plans to undertake to lead the energy
transition and tackle climate change, promoting a sustainable business model that creates long-term
value.
> It also performs a policy-setting role and provides an assessment of the adequacy of the internal con-
trol and risk management system (the ICRMS), determining the nature and level of risk compatible
with the strategic objectives of the Company and the Group. The ICRMS consists of the set of rules,
procedures and organizational structures designed to enable the identification, measurement, ma-
nagement and monitoring of the main risks to which the Company and its subsidiaries are exposed.
These risks include those that could arise in a medium- to long-term perspective, including the risks
associated with climate change.
In compliance with the provisions of the Italian Civil Code, the Board of Directors has delegated part of its management duties
to the CEO and, in accordance with the recommendations of the Corporate Governance Code and applicable legislation, has
appointed the following committees from among its members to provide recommendations and advice.
Corporate
Governance and
Sustainability
Committee
8meetings held by
the Committee
in 2019, in 5 of
which it addressed
issues connected
with climate
and their impact
on strategies,
operations and
sustainability
> It assists the Board of Directors in assessment and decision-making activities concerning, among other
things, sustainability, including any relevant climate issues connected with the operations of the Group
and its interaction with all stakeholders.
> A majority of its members are independent directors and in 2019 it was composed of a Chairman and
two independent directors.
> With regard to sustainability issues, it examines:
- the guidelines of the Sustainability Plan, including the climate objectives set out in the plan;
- the general structure of the Sustainability Report, which includes the Non-Financial Statement,
and the approach to disclosures on climate change adopted in those documents, issuing a prior
opinion to the Board of Directors, which is responsible for approving these documents.
(1) Sustainability comprises issues connected with climate change, atmospheric emissions, managing water resources, biodiversity, the circular economy, health
and safety, diversity, management and development of employees, relations with communities and customers, the supply chain, ethical conduct and human
rights.
The Enel corporate governance system
23
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Control and Risk
Committee
12meetings held by
the Committee
in 2019, in 6 of
which it addressed
issues connected
with climate
and their impact
on strategies,
operations and
sustainability
Nomination and
Compensation
Committee
8meetings held by
the Committe in
2019
Related Parties
Committee
1 meeting held by the
Committe in 2019
Board of Statutory
Auditors
17meetings held by
the Board in 2019
Chairman of the
Board of Directors
24
> It supports the Board of Directors in performing its duties regarding internal control and risk mana-
gement, as well as evaluating the periodic financial reports.
> It is composed of non-executive directors, the majority of whom (including its Chairman) are inde-
pendent. In 2019 it was made up of four independent directors.
> It also examines the content of the consolidated financial statements and the Sustainability Report,
which includes the Non-Financial Statement relevant for the purposes of the ICRMS and contains
corporate disclosures on climate issues, issuing a prior opinion on these aspects to the Board of
Directors, called to approve those documents.
> It supports the Board of Directors in decisions concerning the size and composition of the Board
itself, as well as the remuneration of executive directors and key management personnel.
> It is composed of non-executive directors, the majority of whom (including its Chairman) are inde-
pendent. In 2019, it was made up of four independent directors.
> In 2019, it confirmed the establishment of performance targets connected with sustainability issues
for the short- and long-term variable remuneration of top management.
> It performs the functions provided for in the relevant CONSOB regulations and in the specific Enel
procedure for transactions with related parties, issuing in particular a reasoned opinion on the tran-
sactions governed by the procedure.
> It is composed of independent, non-executive directors. In 2019, it was made up of four independent
directors.
It is charged with overseeing:
> compliance with the law and the bylaws, as well as compliance with the principles of sound administration
in carrying out corporate activities;
> the financial reporting process and the appropriateness of the organizational structure, the internal control
system and the administrative-accounting system of the Company;
> the statutory audit of the annual accounts and the consolidated accounts, as well as the independence of
the Audit Firm;
> the approach adopted in implementing the corporate governance rules envisaged by the Corporate Go-
vernance Code.
> The Chairman is vested by the bylaws with the powers to represent the Company and to sign on its behalf.
> Presides over Shareholders’ Meetings.
> Convenes the meetings of the Board of Directors, establishes the agenda and presides over its pro-
ceedings, ensuring that sufficient information on the issues being addressed in the agenda is provi-
ded in a timely manner to all members of the Board of Directors and the Board of Statutory Auditors.
> Ascertains that the Board’s resolutions are carried out.
> Pursuant to a Board resolution of May 5, 2017, the Chairman has been vested with a number of ad-
ditional non-executive powers.
> In the exercise of the function of stimulating and coordinating the activities of the Board of Direc-
tors, the Chairman plays a proactive role in the process of approving and monitoring of corporate
and sustainability strategies, which are sharply focused on the decarbonization and electrification of
energy consumption.
> In addition, during 2019 the Chairman also chaired the Corporate Governance and Sustainability Committee.
Consolidated Annual Report 2019 Chief Executive
Officer
> Like the Chairman of the Board of Directors, the CEO is vested by the bylaws with the powers to re-
present the Company and to sign on its behalf, and in addition is vested by a Board resolution of May
5, 2017 with all powers for managing the Company, with the exception of those that are otherwise
assigned by law or the bylaws or that the aforesaid resolution reserves for the Board of Directors.
> In the exercise of these powers, the CEO has defined a sustainable business model, delineating a
strategy to lead the energy transition towards a low-carbon model.
> The CEO reports to the Board of Directors and the Board of Statutory Auditors on the activities perfor-
med in the exercise of the powers granted to him, including business activities consistent with Enel’s
commitment to address climate change.
> The CEO has also been designated as the director responsible for the ICRMS.
> He represents Enel in various initiatives that deal with sustainability, holding positions of leadership in
world-renowned institutions such as the United Nations Global Compact and the Global Investors for
Sustainable Development (GISD) Alliance launched by the United Nations in 2019.
Statutory audit
of the accounts
> This is performed by a specialized firm entered in the appropriate register of auditors, which is
appointed by the Shareholders’ Meeting on the basis of a reasoned proposal from the Board of
Statutory Auditors.
Good corporate
governance
practices
> In 2019, the Company also organized a special induction program to provide the directors with an under-
standing of the sectors in which the Group operates, including issues related to climate change and the
related impact on industrial strategy and corporate operations.
> At the end of 2019 and during the first two months of 2020, the Board of Directors carried out, with
the assistance of a specialized independent advisor, an assessment of the size, composition and
functioning of the Board and its committees (the “board review”), in line with the most advanced
corporate governance practices accepted at the international level and incorporated within the Cor-
porate Governance Code. This board review also analyzed specific aspects concerning the asses-
sment of sustainability issues by the Board of Directors. The board review was carried out using
a “peer review” approach, i.e. evaluating not only the operation of the body as a whole, but also
the style and substance of the contribution made by each of its members. The results of the board
review confirmed an extremely positive overall picture of the operation of Enel’s Board of Directors
and Board committees, indicating that these bodies operate effectively and transparently, in strict
compliance with national and international best practice in the field of corporate governance, as
confirmed by the advisor.
For more detailed information on the corporate governance
the Company’s website (http://www.enel.com, in the “Gover-
system, please see the Report on Corporate Governance and
nance” section).
Ownership Structure of Enel, which has been published on
The Enel corporate governance system
25
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Enel organizational model
The Enel Group structure is organized into a matrix that comprises:
The Global Business Lines are responsible for managing and developing assets, optimizing their
performance and the return on capital employed in the various geographical areas in which the Group
operates. The Business Lines are also tasked with improving the efficiency of the processes they
manage and sharing best practices at the global level. The Group, which also draws on the work of an
Investment Committee(2), benefits from a centralized industrial vision of projects in the various Business
Lines. Each project is assessed not only on the basis of its financial return but also in relation to the
Global Business
Lines
best technologies available at the Group level, which reflect the new strategic line adopted, explicitly
integrating the SDGs within our financial strategy and promoting a low-carbon business model.
Furthermore, each Business Line contributes to guiding Enel’s leadership in the energy transition and
in the fight against climate change, managing the associated risks and opportunities in its area of
competence. In 2019, Global Power Generation was created with the merger of Enel Green Power and
Global Thermal Generation to confirm the Enel Group’s leading role in the energy transition, pursuing
an integrated process of decarbonization and the sustainable development of renewable capacity. In
addition, the Grid Blue Sky project was launched. Its objective is to innovate and digitalize infrastructures
and networks in order to make them an enabling factor for the achievement of the Climate Action
objectives, thanks to the progressive transformation of Enel into a platform-based group.
Regions and Countries are responsible for managing relationships with institutional bodies and regulatory
authorities, as well as selling electricity and gas, in each of the countries in which the Group is present,
while also providing staff and other service support to the Business Lines. They are also charged with
promoting decarbonization and guiding the energy transition towards a low-carbon business model
within their areas of responsibility. In 2019, the Group’s geographical organization in the Americas was
revised with the creation of the North America Region, which includes Mexico, and the integration of
Costa Rica, Guatemala and Panama into the Latin America region.
Regions and
Countries
The following functions provide support to Enel’s business operations:
The Global Service Functions are responsible for managing information and communication technology
Global Service
Functions
activities and procurement at the Group level. They are also responsible for adopting sustainability criteria,
including climate change issues, in managing the supply chain and developing digital solutions to support
the development of enabling technologies for the energy transition and the fight against climate change.
Holding Company
Functions
The Holding Company Functions are responsible for managing governance processes at the
Group level. The Administration, Finance and Control function is also responsible for consolidating
scenario analysis and managing the strategic and financial planning process aimed at promoting the
decarbonization of the energy mix and the electrification of energy demand, key actions in the fight
against climate change.
(2) The Group Investment Committee is made up of the heads of Administration, Finance and Control, Innovability, Legal and Corporate Affiars, Global Procure-
ment, the heads of the Regions and the Business Lines.
26
Consolidated Annual Report 2019 C
Enel Group Chairman
P. Grieco
HLD
HOLDING FUNCTIONS
CEO
Enel Group CEO
F. Starace
Administration, Finance and Control
A. De Paoli
People and Organization
F. Di Carlo
Communications
R. Deambrogio
Innovability
E. Ciorra
Global Procurement
S. Bernabei
Legal and Corporate Affairs
G. Fazio
Audit
S. Fiori
Global Digital Solutions
C. Bozzoli
GBL
GLOBAL BUSINESS LINE
CRCOUNTRY AND REGION
Global
Infrastructure
& Networks
––
L. Gallo
Global
Trading
Global Power
Generation
Enel X
––
C. Machetti
––
A. Cammisecra
––
F. Venturini
Italy | C. Tamburi
Iberia | J. D. Bogas Gálvez
Europe and Euro-Mediterranean Affairs | S. Mori
Africa, Asia and Oceania | A. Cammisecra
North America | E. Viale
Latin America | M. Bezzeccheri
Enel organizational model
27
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Incentive system
Enel’s remuneration policy for 2019, which was adopted by
differentiated by the functions and responsibilities as-
the Board of Directors acting on a proposal of the Nomination
signed to them;
and Compensation Committee and received considerable ap-
> a long-term variable component linked to participation in
proval from the shareholders on the occasion of the Sharehol-
specific long-term incentive plans. In particular, for 2019
ders’ Meeting of May 16, 2019, was formulated on the basis
long-term variable remuneration is linked to participation
of national and international best practice, the guidance pro-
in the Long-Term Incentive Plan 2019 (“2019 LTI Plan”),
vided by the favorable vote of the Shareholders’ Meeting of
which establishes three-year performance targets for the
May 24, 2018 on the remuneration policy for 2018 as well as
following:
the results of the engagement activity on corporate governan-
- Enel’s average TSR (Total Shareholder Return) compa-
ce issues pursued by the Company between December 2018
red with the average TSR for the Euro STOXX Utilities
and February 2019 with the leading proxy advisors and Enel’s
- EMU index for the 2019-2021 period;
institutional investors. In line with the recommendations of
- ROACE (Return on Average Capital Employed), cumula-
the Corporate Governance Code for listed companies, Enel’s
tive for 2019-2021;
remuneration policy for 2019 is designed to attract, motivate
- CO2 emissions of Enel Group generation plants in 2021.
and retain personnel possessing the professional skills most
suitable to successfully managing the Company, incentivizing
The 2019 LTI Plan establishes that any bonus accrued is re-
achievement of our strategic objectives and ensuring sustai-
presented by an equity component, which can be supplemen-
nable growth. It is also structured so as to align the interests
ted – depending on the level of achievement of the various
of management with the priority objective of creating sustai-
targets – by a cash component. More specifically, the Plan
nable value for shareholders in the medium/long term and
envisages that 100% of the basic bonus of the Chief Executi-
promoting the Enel mission and our corporate values.
ve Officer and General Manager and 50% of the basic bonus
The 2019 remuneration policy adopted for the Chief Executive
of key management personnel will be paid in Enel shares pre-
Officer and General Manager and key management personnel
viously acquired by the Company.
envisages:
> a fixed component;
The disbursement of a significant portion of long-term va-
riable remuneration (70% of the total) is deferred to the se-
> a short-term variable component (MBO) that will be paid
cond year following the three-year performance period cove-
out on the basis of achievement of specific performance
objectives. Namely:
- for the CEO, short-term objectives have been set for
red by the 2019 LTI Plan.
The establishment of a target in the 2019 LTI Plan for CO2
emissions (grams per kWh equivalent produced by the Group
the following components:
in 2021) and a target in the short-term variable remuneration
• consolidated net ordinary income;
system of the Chief Executive Officer and General Manager
• funds from operations/consolidated net financial
linked to workplace safety is designed to promote the imple-
debt;
• Group opex;
• workplace safety;
mentation of a sustainable business model.
A detailed description of the remuneration policy for 2019 and of
remuneration paid in 2018 is provided in Enel’s 2019 Remunera-
- for key management personnel, objective annual go-
tion Report available on the Company’s website (www.enel.com).
als connected with their business area have been set,
28
Consolidated Annual Report 2019 LTI PLAN (Long-Term Incentive)
VESTING PERIOD
PAYOUT 30%(1)
PAYOUT OF 70%(1)
Year 1
Year 2
Year 3
Year 4
Year 5
3-year performance period
Verify achievement
Deferred payment
(1) If performance targets are achieved.
Enel share-based incentive plan
On May 16, 2019, the Ordinary Shareholders’ Meeting of
subject to the achievement of specific performance targets
Enel SpA (“Enel” or the “Company”) approved the Long-
during the 2019-2021 period (the so-called performance pe-
Term Incentive Plan for 2019 (“2019 LTI Plan” or “Plan”) for
riod). If these targets are achieved – and depending on the le-
the management of Enel and/or its subsidiaries pursuant to
vel of achievement – 30% of the stock and cash components
Article 2359 of the Italian Civil Code, granting the Board of
of the incentive will be paid to the beneficiaries in 2022 and
Directors all the necessary powers to implement the Plan.
the remaining 70% in 2023.
The beneficiaries of the Plan – whose characteristics are descri-
In accordance with the resolution of the Board of Directors
bed in detail in the information document prepared pursuant to
of September 19, 2019 – which in implementation of the au-
Article 84-bis of the CONSOB Regulation issued with Resolu-
thorization granted by the Shareholders’ Meeting of May 16,
tion no. 11971 of May 14, 1999, which is available to the public
2019 and in compliance with the related terms, approved the
in the section of Enel’s website (www.enel.com) dedicated to
start of a share buyback program to support the 2019 LTI
the Shareholders’ Meeting of May 16, 2019 – are the Chief Exe-
Plan in the maximum amount of €10.5 million and a maxi-
cutive Officer/General Manager of Enel and the managers of
mum number of 2.5 million shares – between September 23,
the Enel Group who occupy key positions directly responsible
2019 and December 2, 2019, the Company purchased a total
for corporate performance or considered of strategic interest. It
of 1,549,152 treasury shares (equal to about 0.015% of sha-
provides for the award to the beneficiaries of an incentive consi-
re capital) at a weighted average price of €6.7779 per share
sting of a stock component and a cash component.
with a total value of €10,499,998.93. In granting the shares
This incentive – determined, at the time of the award, on a
under the Plan, 1,538,547 shares were awarded, although
base value calculated in relation to the fixed remuneration of
actual disbursement to the beneficiaries remains subordinate
the individual beneficiary – may vary depending on the degree
to the level of achievement of the performance targets.
of achievement of each of the three-year performance targets
The cost of the Plan is determined with reference to the fair value
by the Plan, ranging from zero up to a maximum of 280% or
of the equity instruments assigned during the year and is reco-
180% of the base value in the case, respectively, of the Chief
gnized over the duration of the vesting period in equity reserves.
Executive Officer/General Manager or the other beneficiaries.
Considering the market price of the Enel share on the grant
The 2019 LTI Plan also provides that, of the total incentive
date (i.e., November 12, 2019), equal to €6.983, the fair value
effectively vested, the bonus will be fully paid in shares in
of the equity instruments on that date, taking account of the
the amount of (i) up to 100% of the base value for the Chief
number of shares granted, is equal to €10,743,674.
Executive Officer/General Manager and (ii) up to 50% of the
The fair value of the financial instruments pertaining to the
base value for the other beneficiaries.
year, determined on the basis of the market price of the stock
The actual award of the bonus under the 2019 LTI Plan is
at the end of the period, is equal to €350,987.
Incentive system
29
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Values and pillars of corporate ethics
A robust system of ethics underlies all activities of the Enel
of Ethics, the Compliance Model under Legislative Decree
Group. This system is embodied in a dynamic set of rules
231/2001, the Enel Global Compliance Program, the Zero-To-
constantly oriented towards incorporating national and inter-
lerance-of-Corruption Plan, the Human Rights Policy and any
national best practices that everyone who works for and with
other national compliance models adopted by Group compa-
Enel must respect and apply in their daily activities. The sy-
nies in accordance with local laws and regulations.
stem is based on specific compliance instruments: the Code
Code of Ethics
In 2002, Enel adopted a Code of Ethics, which expresses the
general principles set out in the Code.
Company’s ethical responsibilities and commitments in con-
Any violations or suspected violations of Enel Compliance
ducting business, governing and standardizing corporate con-
Programs can be reported, including in anonymous form,
duct on the basis of standards aimed to ensure the maximum
through a single Group-level platform (the “Ethics Point”). In
transparency and fairness with all stakeholders.
2019, the Code was updated to reflect a number of internatio-
The Code of Ethics is valid in Italy and abroad, taking due
nal provisions concerning human rights and align the duties of
account of the cultural, social and economic diversity of the
the units responsible for updating the document with current
various countries in which the Group operates. Enel also re-
organizational arrangements.
quires that all associates and other investees and its main
suppliers and partners adopt conduct that is in line with the
No.
Total reported violations of the Code of Ethics
Confirmed violations of the Code of Ethics (1)
- of which violations involving conflicts of interest/bribery
2019
166
36
8
2018
144
31
10
Change
22
5
(2)
15.3%
16.1%
-20.0%
(1) The analysis of reports received in 2018 was completed in 2019. For that reason, the number of verified violations for 2018 was restated from 30 to 31. The
additional violation is attributable to an issue with compliance with overtime regulations by a supplier
Compliance Model (Legislative Decree
231/2001)
Legislative Decree 231 of June 8, 2001 introduced into Italian
adopt, back in 2002, this sort of compliance model that met
law a system of adimistrative (and de facto criminal) liability for
the requirements of Legislative Decree 231/2001 (also known
companies for certain types of offenses committed by their
as “Model 231”). It has been constantly updated to reflect de-
directors, managers or employees on behalf of or to the be-
velopments in the applicable regulatory framework and cur-
nefit of the company. Enel was the first organization in Italy to
rent organizational arrangements.
30
Consolidated Annual Report 2019 Enel Global Compliance Program (EGCP)
The Enel Global Compliance Program for the Group’s foreign
Program – which encompasses standards of conduct and are-
companies was approved by Enel in September 2016. It is a
as to be monitored for preventive purposes – is based on illicit
governance mechanism aimed at strengthening the Group’s
conduct that is generally considered such in most countries,
ethical and professional commitment to preventing the com-
such as corruption, crimes against the government, false ac-
mission of crimes abroad that could result in criminal liability
counting, money laundering, violations of regulations gover-
for the company and do harm to our reputation. Identification
ning safety in the workplace, environmental crimes, etc.
of the types of crime covered by the Enel Global Compliance
Zero-Tolerance-of-Corruption Plan
and the anti-bribery management system
In compliance with the tenth principle of the Global Compact,
transparency in conducting company business and operations
according to which “businesses should work against corrup-
and to safeguard our image and positioning, the work of our
tion in all its forms, including extortion and bribery”, Enel is
employees, the expectations of shareholders and all of the
committed to combating corruption. For this reason, in 2006
Group’s stakeholders. Following receipt of the ISO 37001 an-
we adopted the “Zero-Tolerance-of-Corruption (ZTC) Plan”,
ti-corruption certification by Enel SpA in 2017, the 37001 certi-
confirming the Group’s commitment, as described in both the
fication plan has gradually been extended to the main Italian
Code of Ethics and the Model 231, to ensure propriety and
and international subsidiaries of the Group.
Human Rights Policy
In order to give effect to the United Nations Guiding Principles
employees in any manner of those companies. Similarly, with
on Business and Human Rights, in 2013 the Enel SpA Board
this formal commitment, Enel explicitly becomes a promoter
of Directors approved the Human Rights Policy, which was
of the observance of such rights on the part of contractors,
subsequently approved by all the subsidiaries of the Group.
suppliers and business partners as part of its business rela-
This policy sets out the commitments and responsibilities
tionships. Implementation of the activities provided for in the
in respect of human rights on the part of the employees of
action plans, which were prepared following due diligence on
Enel SpA and its subsidiaries, whether they be directors or
the management system in 2017, continued in 2019.
Values and pillars of corporate ethics
31
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 32
Relazione Finanziaria Annuale 2019 3.
STRATEGY & RISK
MANAGEMENT
REPORT
ON OPERATIONS
Reference scenario
Macroeconomic environment
World economic growth in 2019 slowed markedly, confirming
government intervened actively with a very accommodative
the weakness that had emerged in the 2nd Half of 2018. The
monetary and fiscal policy, which should allow the economy
trade tensions between the United States and China, the tu-
to normalize over the course of 2020.
multuous geo-political environment and the persistent uncer-
In Brazil, economic activity was weak in the first part of 2019
tainty linked to the Brexit negotiations curbed consumption
due to the difficulties registered in industry and services,
and investment. These factors were compounded by the slow
while private consumption remained fairly resilient. Indicators
pace of growth in China, which has stabilized at around 6%,
for the real economy have reversed course, however, show-
its lowest level in the last 30 years.
ing a strong recovery in the last two quarters. The approval
of pension reform has restored the confidence of firms and
The United States continued its long expansion, displaying
consumers and paved the way for the start of a new cycle of
resilient domestic demand and a job market with unemploy-
reforms in 2020.
ment at historic lows (3.6%), as well as continuing real wage
In Colombia, economic activity outperformed the entire area,
growth of 3%. However, the restrictive monetary policy im-
driven by private consumption and investment, despite the
plemented by the Fed has adversely affected some sectors
escalation of social unrest towards the end of the year.
of the economy, such as real estate, which has experienced
In Peru, expansionary financial conditions sustained domestic
a sharp drop. In addition, manufacturing was hit hard by the
demand; however, the shock in the primary sector in the first
US-China trade war.
part of the year impacted the economic recovery.
Growth was modest in the euro area, averaging 0.2% on a
The outbreak of the COVID-19 epidemic in China and the sub-
quarterly basis.
sequent spread of new infections in other parts of the world
The weakness is mainly attributable to the decline in exports
since the start of the year have radically altered the scenario
and the crisis in the auto sector, which has been particular-
for 2020. At this point, a strong global shock is expected both
ly significant for Germany. Domestic demand in France and
on the supply side (i.e. interruptions of the supply chain and
Spain has been resilient, while economic activity has stagnat-
production activities) and on the demand side (lower discre-
ed in Germany and Italy.
tionary consumption and investment due to the restrictions).
Among the mature economies, the euro area is the most at
In Latin America, economic conditions were weak and varied,
risk, given the weight of manufacturing, discretionary con-
affected by strong political instability. The deterioration in the
sumption and exports in its economy and the strong links with
global context, the slowdown in the Chinese economy and
China in the supply chain. By virtue of the restrictive mea-
the decline in commodity prices had a major impact on the
sures adopted in many countries in the euro area, the proba-
entire area.
bility that it will enter a recession in the 3rd Quarter of 2020
Argentina is in recession and the uncertainty generated by
is now becoming high. Italy is already in recession from the
the new economic policies adopted by the Fernandez govern-
1st Quarter of 2020 and any further restrictions imposed by
ment created concern about debt stability and the prospects
the Government threaten to erode the economic outlook for
for recovery. GDP contracted by 2.1% in 2019 and is expected
the current year even further. Following the imposition of new
to fall again in 2020.
restrictions, Spain will also be sharply impacted, not only in
The Chilean economy was shaken by the social uprisings last
the services sector (e.g. tourism) and discretionary consump-
October, which led to a sharp contraction in the real econ-
tion but above all in manufacturing and other industry. Owing
omy towards the end of the year, penalizing the currency
to the weakness of their healthcare systems and the limited
and slowing economic activity. Both the central bank and the
scope to introduce expansionary fiscal measures to support
34
Consolidated Annual Report 2019 demand (as well as their large debt exposure denominated in
was also created, easing the constraints of the previous quan-
foreign currencies), the emerging economies are now highly
titative easing program and thus allowing the ECB to purchase
vulnerable.
more Italian public debt securities.
At this juncture, the response of the central banks was rapid
Governments around the world are also introducing major
and coordinated. The Fed aggressively cut interest rates (in
fiscal stimulus measures to counter the economic conse-
two extraordinary sessions), bringing them to their neutral
quences of restrictions imposed to combat the coronavirus
value (from 1.50-1.75% to 0-0.25%). The Bank of England
pandemic. The support of the European Commission and the
lowered its official interest rate to 0.10% from 0.75%. The
possibility of derogating from the constraints of the Stability
response of the ECB was focused entirely on the problem
Pact will allow the Italian government and those of other Eu-
of liquidity: it therefore did not cut rates but did introduce a
ropean countries to implement the necessary measures to
massive monetary stimulus. First, it expanded its quantitative
promote economic recovery in the 2nd Half of the year.
easing program by €120 billion until the end of 2020, greater
than expected, while at the same time more favorable con-
In the coming months, a clearer picture of the economic con-
ditions were granted for banks’ long-term refinancing opera-
sequences of the epidemic and the impact on the financial
tions. A €750 billion Pandemic Emergency Purchase Program
markets will certainly emerge.
GDP growth
%
Italy
Spain
Portugal
Greece
Argentina
Romania
Russia
Brazil
Chile
Colombia
Mexico
Peru
Canada
United States
South Africa
2019
0.3
2.0
2.2
1.9
-2.1
4.2
1.3
1.1
1.0
3.3
-0.1
2.2
1.6
2.3
0.2
2018
0.7
2.4
2.6
1.9
-2.4
4.5
2.2
1.3
4.0
2.5
2.1
4.0
2.0
2.9
0.8
Source: National statistical institutes and Enel based on data from ISTAT, INE, EUROSTAT, IMF, OECD and Global Insight.
Reference scenario
35
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Average exchange rates
Euro/US dollar
Euro/British pound
Euro/Swiss franc
US dollar/Japanese yen
US dollar/Canadian dollar
US dollar/Australian dollar
US dollar/Russian ruble
US dollar/Argentine peso
US dollar/Brazilian real
US dollar/Chilean peso
US dollar/Colombian peso
US dollar/Peruvian nuevo sol
US dollar/Mexican peso
US dollar/Indian rupee
US dollar/South African rand
Inflation
%
Italy
Spain
Russia
Romania
India
South Africa
Argentina
Brazil
Chile
Colombia
Mexico
Peru
USA
Canada
2019
1.119
0.88
1.11
109
1.33
1.44
62.99
48.17
3.94
702.85
3,280
3.34
19.25
70.42
14.45
2019
0.6
0.7
4.5
3.8
3.7
4.1
53.6
3.7
2.3
3.5
3.5
2.1
1.8
2.0
2018
1.181
0.89
1.15
110.45
1.30
1.34
67.15
28.05
3.65
641.81
2,956
3.29
19.23
68.40
13.24
Change
-5.25%
-1.12%
-3.48%
-1.31%
2.31%
7.46%
-6.20%
71.73%
7.95%
9.51%
10.96%
1.52%
0.10%
2.95%
9.14%
2018
Change
1.1
1.7
2.9
4.6
3.9
4.6
33.8
3.7
2.3
3.2
3.2
1.3
2.4
2.2
-0.5
-1
1.6
-0.8
-0.2
-0.5
19.8
-
-
0.3
0.3
0.8
-0.6
-0.2
The IBOR reform
Interbank Offered Rates (IBORs) represent benchmarks for
assessment of the impacts on the financial instruments subject
most financial instruments marketed worldwide.
to revision as well as on the organizational structures involved.
Over the years there have been several cases of manipulation
Note that management is aware of the associated risks and
of these rates by banks, and for this reason regulators around
for this reason these activities have been planned so as to
the world have begun a reform of the IBORs to restore the
complete the transition by the deadline set for 2021.
reliability and soundness of these benchmarks.
In view of the considerable uncertainty surrounding the timing of
the reform in the transition phase, the Enel Group has launched an
36
Consolidated Annual Report 2019 The energy industry
Energy - commodity conditions
Volatility returned to the oil market last year. Observing devel-
opments in the price of Brent, we find alternating upward and
downward price movements during 2019, with a peak above
$71 a barrel in April, before falling below $60 a barrel in late
summer.
Despite the numerous events exerting downward pressure
on the global oil supply (the sanctions imposed by the Trump
administration on Iranian exports, the deterioration in the
crisis in Venezuela and the attacks on infrastructure in Saudi
Arabia), prices were lower than at the beginning of the year,
indicating a structural weakness in global demand.
The average API2 price of coal in 2019 fell by 34% compared
with 2018. This trend is attributable to two main factors: 1) the
drop in global demand and 2) supply cuts that were insufficient
to rebalance the fundamentals. The rapid drop in coal demand
in Europe (with a decline of about 20% in imports compared
with a year earlier) was due both to a number of closures of
capacity and a replacement effect between coal and gas due
to the greater cost competitiveness of combined-cycle plants.
On the supply side, Indonesia maintained its position as the
main exporter (a year-on-year increase of 40 million metric
tons), followed by Russia and Australia, while exports from
Colombia and the United States decreased due to the decline
in demand from Europe.
During the past year, the weakening of Asian demand and
new liquefaction capacity entering the market led to a surplus
of LNG, which helped divert gas flows to Europe, first driving
gas stocks to record levels and then causing a sharp drop in
gas prices at all major European hubs. The average TTF gas
price, for example, was €13.6/MWh, down 40% compared
with a year earlier.
Brent
API2
TTF
CO2
$/bbl
$/t
€/MWh
€/t
2019
64
61
14
25
2018
72
92
23
16
Change
-11.1%
-33.7%
-39.1%
56.3%
After a 2018 characterized by constant growth, 2019 was in-
stead afflicted by considerable volatility, which first saw the
price of CO2 allowances fall below €20/ton in February and
then rise to €30/ton in July. The combination of mild tem-
The sharp decrease in gas prices combined with the rise in
the price of CO2 has helped drive changes in the generation
mix in some European countries, encouraging gas-fired gen-
eration even in countries like Spain, where coal has historically
peratures, uncertainty over Brexit negotiations and concerns
represented the marginal generation technology.
about possible risks associated with global macroeconomic
growth strongly impacted market developments.
Reference scenario
37
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Electricity and natural gas markets
Electricity demand
Developments in electricity demand (1)
GWh
Italy
Spain
Romania
Russia (2)
Argentina
Brazil
Chile
Colombia
Peru
(1) Gross of grid losses.
(2) Europe/Urals.
Source: Enel based on TSO figures.
2019
319,597
248,876
61,699
801,908
133,323
594,368
77,064
71,181
53,483
2018
321,910
253,495
62,044
805,916
137,262
583,025
76,175
69,176
50,836
Change
-0.7%
-1.8%
-0.6%
-0.5%
-2.9%
1.9%
1.2%
2.9%
5.2%
In 2019, electricity demand trended downwards: in Italy, de-
creased sharply (-3%) in Argentina due to recession in the
mand contracted by 0.7% compared with 2018, while Spain
country, while all other countries in which Enel has a presence
registered an even larger decline of 1.8%, reflecting weather
posted increases in electricity demand: Brazil +1.9%, Chile
developments.
+1.2% and Colombia +2.9%.
Among the Latin American countries, electricity demand de-
Electricity prices
Electricity prices
Average
baseload price
2019 (€/MWh)
52.3
47.5
Change in
average
baseload price
2019-2018
-14.6%
-17.1%
Average
peakload price
2019 (€/MWh)
58.4
51.2
Change in
average
peakload price
2019-2018
-14.2%
-16.8%
Italy
Spain
38
Consolidated Annual Report 2019 Price developments in the main markets
Eurocents/kWh
Final market (residential) (1)
Italy
France
Romania
Spain
Final market (industrial) (2)
Italy
France
Romania
Spain
(1) Annual price net of taxes - annual consumption of between 2,500 kWh and 5,000 kWh.
(2) Annual price net of taxes - annual consumption of between 70,000 MWh and 150,000 MWh.
Source: Eurostat.
2019
2018
Change
0.2301
0.1765
0.1358
0.2403
0.1066
0.0704
0.0985
0.0943
0.2067
0.1754
0.1333
0.2383
0.0755
0.0686
0.0794
0.0880
11.3%
0.6%
1.9%
0.8%
41.2%
2.6%
24.1%
7.2%
Natural gas markets
Natural gas demand
Millions of m3
Italy
Spain
2019
72,947
34,215
2018
71,514
30,062
Change
1,433
4,153
2.0%
13.8%
Last year saw demand for natural gas rise in Italy (+2.0%), while demand jumped sharply in Spain (+13.8%), mainly driven by
electricity generation.
Gas demand in Italy
Millions of m3
Distribution grids
Industry
Thermal generation
Other (1)
Total
2019
31,650
14,002
25,775
1,520
72,947
2018
32,355
14,266
23,361
1,532
71,514
Change
(705)
(264)
2,414
(12)
1,433
-2.2%
-1.9%
10.3%
-0.8%
2.0%
(1) Includes other consumption and losses.
Source: Enel based on data from the Ministry for Economic Development and Snam Rete Gas.
Observing the gas demand by sector, we see that the in-
cent thanks to the steep decline in the VTP price, which made
crease in Italy in 2019 is due exclusively to the thermal gen-
combined-cycle generation especially competitive.
eration sector, which registered an increase of over ten per
Reference scenario
39
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Climate change and long-term scenarios
In the following pages, Enel sets out its strategy founded on
ened in 2019: the target for the reduction of direct emissions
decarbonization, innovation and digitalization, with a sharp
focus on the fight against climate change. We describe an
integrated business model directed at sustainable develop-
ment. In order to promote transparency in our climate-change
disclosures, we intend to give our stakeholders all the tools
from generation by 2020, which was set in 2015 at 350 g/
kWheq of CO2 with a 25% reduction compared with 2007, was
achieved one year earlier. In fact, 2019 closed with a reduc-
tion of 37% compared with 2007, to 296 g/kWheq of CO2. This
objective has been certified by the Science Based Targets ini-
and information they need to appreciate how the Group is
tiative (SBTi)(4) as consistent with the 2DS(5) scenario of the
tackling climate change with diligence and determination.
International Energy Agency, which defines an energy system
Enel has therefore publicly committed itself to adopting the
development path and an emission trajectory consistent with
recommendations of the Task Force on Climate-related Fi-
at least a 50% chance of limiting the average global tempera-
nancial Disclosures (TCFD)(1) of the Financial Stability Board,
ture rise to 2 °C. As a result, the reduction target for 2020 has
which in June 2017 published specific recommendations for
the voluntary reporting of the financial impact of climate risks.
been updated in the new 2020-2022 Strategic Plan to 254 g/
kWheq of CO2.
The Group is also taking on board the “Guidelines on report-
ing climate-related information” published by the European
In September 2019, Enel further enhanced its commitment
Commission in June 2019, which, together with the TCFD rec-
ommendations and the GRI standard(2), constituted the main
benchmark framework for the Group’s reporting on climate
by setting a new target for 2030, with which it undertook to
reduce direct CO2 emissions per kWh by 70% by 2030 (Scope
1) compared with 2017. This target, for direct emissions from
change issues in 2019.
electricity generation, is nearly three times as ambitious as
the previous objective for 2020 and is fully aligned with the
The Enel Group is committed to developing a business model
Paris Agreement (COP21). In addition, the objective has been
that is consistent with the objectives of the Paris Agreement
certified by the Science Based Targets initiative, which is cur-
(COP21)(3) to contain the average increase in global tempera-
rently the most ambitious certification criterion available for
ture below 2 °C compared with pre-industrial levels and to
the utility sector and is consistent with the Well Below 2C
continue to limit this rise to 1.5 °C. In 2019 Enel officially reaf-
pathway of the SBTi and the IEA B2DS scenario. This accel-
firmed this commitment, responding to the call for action by
eration is also a response to the appeal of the Intergovern-
the United Nations and being the only Italian company to sign
mental Panel on Climate Change (IPCC) as part of its effort to
the commitment to limit the increase in global temperatures
strengthen the global response to the climate change threat.
to 1.5 °C and to achieve zero emissions by 2050.
Included in the special report, the appeal warns of the impacts
The Group’s ambition for leadership in the energy transition
of global warming of 1.5 °C above pre-industrial levels and the
and the fight against climate change was further strength-
related global greenhouse gas emission pathways.
(1) The TCFD is the task force established by the Financial Stability Board in December 2015 to develop voluntary guidelines and recommendations for companies
in order to provide information to all stakeholders on the risks and opportunities associated with climate change.
(2) The Global Reporting Initiative is an independent international organization that develops global reporting standards for sustainability.
(3) The agreement reached in December 2015 at the 21st meeting of the Conference of the Parties (COP21) incorporates a commitment to limit the increase global
temperature to below 2 °C and – if possible – below 1.5 °C compared with pre-industrial levels.
(4) An initiative to provide companies with targets for reducing greenhouse gas emissions (GHG) consistent with what the current level of scientific knowledge
deems necessary for limiting the rise in global temperature well below of 2 °C.
(5) The 2DS scenario describes an energy system consistent with an emissions trajectory which, with an 80% probability, would make it possible to limit the
increase in the average global temperature to no more than 2 °C.
40
Consolidated Annual Report 2019 Scope 1 (1)
(g CO2/kWheq)
Scope 1 (1)
(g CO2/kWheq)
465
465
411
411
369
369
-70%
-70%
296
296
254
254
FULL decarbonization
by 2050
FULL decarbonization
by 2050
125
125
2007
2017
2018
2019
2020
2030(3)
2030(3)
2050
2007
2017
2018
Previous
2020 target(2)
2019
350
2020
Target
achieved
2030(3)
2030(3)
2050
1. Includes only direct emissions due to power generation. Other direct emissions are not included in the definition of the target as they are marginal and meet
the exclusion criterion of the SBTi methodology that sets a margin of 5% of total Scope 1 and Scope 2 emissions.
2. Scope 1 emissions by 2020, in line with IEA 2DS scenario.
3. Scope 1 emissions by 2030, in line with Well Below 2C path of the Science Based Targets initiative and the IEA B2DS scenario. CO2 emissions reduced
1. Includes only direct emissions due to power generation. Other direct emissions are not included in the definition of the target as they are marginal and meet
by 70% by 2030 compared with 2017.
Previous
2020 target(2)
350
Target
achieved
the exclusion criterion of the SBTi methodology that sets a margin of 5% of total Scope 1 and Scope 2 emissions.
2. Scope 1 emissions by 2020, in line with IEA 2DS scenario.
3. Scope 1 emissions by 2030, in line with Well Below 2C path of the Science Based Targets initiative and the IEA B2DS scenario. CO2 emissions reduced
In parallel with direct emissions, the Group has set a new
tion of gas by the Group’s end users (indirect emissions from
by 70% by 2030 compared with 2017.
target, also certified by the Science Based Targets initiative, to
the use of products sold), which represent a significant source
also reduce indirect emissions associated with the consump-
Scope 3 gas retail(1)
(Mton CO2)
Scope 3 gas retail(1)
(Mton CO2)
25.3
25.4
25.3
25.4
of indirect Scope 3 emissions, by 16% by 2030.
-16%
-16%
23.9
23.9
21.2
21.2
2017
2018
2019
2030
1. Scope 3 emissions connected with sale of gas on retail market by 2030 in line with 2C path of the Science Based Targets initiative.
2017
2018
2019
2030
1. Scope 3 emissions connected with sale of gas on retail market by 2030 in line with 2C path of the Science Based Targets initiative.
The Group develops short-, medium- and long-term scenari-
wards a green economy characterized by ever lower emis-
os for the energy industry and for macroeconomic and finan-
sion levels.
cial conditions in order to support its strategic and industrial
planning and the evaluation of investments and extraordinary
The issues connected with future trends in climate variables
corporate transactions. The role of climate change in these
(in terms of acute and chronic phenomena) define the so-
scenarios is increasingly important in terms of:
called “physical scenario”, while the issues associated with
> acute phenomena (heat waves, flooding, hurricanes etc.)
and their potential impact on industrial assets;
> chronic phenomena related to structural changes in the cli-
the industrial and economic transition towards solutions to
reduce atmospheric concentrations of CO2 are the charac-
teristic elements of the “transition scenario”. The adoption of
mate, such as the rising trend in temperatures, rising sea
these scenarios and their integration into corporate processes
levels etc., which bring about changes in the output of gen-
takes account of the guidelines of the TCFD and enables the
eration plants and in electricity consumption profiles in the
assessment of the risks and opportunities connected with cli-
residential and commercial sectors;
mate change.
> transition of the various industrial and business sectors to-
Reference scenario
41
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
The physical climate scenario
Among the climate projections developed by the Intergovern-
mental Panel on Climate Change (IPCC)(6) on a global scale,
the Group has selected two representing a specific level of
emissions (the so-called “Representative Concentration Path-
way”):
> Representative Concentration Pathway 2.6 (RCP 2.6):
compatible with global warming of less than +2 °C above
pre-industrial levels by 2100, or an average of about +1 °C
in 2081-2100;
> Representative Concentration Pathway 8.5 (RCP 8.5):
compatible with a scenario where no particular measures
are taken to combat climate change, a so-called “business
as usual scenario”. In this scenario, a mean global tempera-
ture increase of about 4.3 °C above pre-industrial levels is
forecast for 2081-2100.
In the RPC 8.5 climate projections, the Mediterranean and
Central/South America will experience a significant increase
in average temperatures and a substantial decline in precip-
itation, with the effects becoming more pronounced in the
second half of the century and the impact increasing up to
2100. In the RCP 2.6 scenario, the effects will be similar but
Italy
Acute phenomena: in the 2030-2050 period, heat waves are
expected to increase appreciably both in terms of frequen-
cy and geographical distribution, especially in the southern
regions of the country. In these scenarios, the intensity of
extreme rain and snowfall events increases sharply, but their
frequency declines compared with historic trends.
Chronic phenomena: the average annual temperature is expect-
ed to increase over the 2030-2050 period in both the RCP 2.6
and 8.5 scenarios. In the RCP 8.5 scenario, the temperature is
expected to rise by an average of 0.4 °C compared with the RCP
2.6 scenario in the 2030-2050 period, with the differential then
widening significantly in the second half of the century. Chron-
ic changes in temperature can be analyzed to obtain information
on the potential effects on cooling and heating demand in local
energy systems. In terms of heating days (HDs), i.e. days with a
temperature below 15 °C, and cooling days (CDs), or days with
a temperature above 24 °C, the 2030-2050 period will see HDs
decrease by 14% and CDs increase by 60% in the RCP 2.6 sce-
nario, while the RCP 8.5 scenario will see a larger decline in HDs
(-17%) and a larger increase in CDs (+80%).
less intense, with the trend slowing in the second half of the
century, thereby producing a substantial differential between
RCP 2.6
the two scenarios in 2100.
The scenarios are global in nature. Accordingly, in order to de-
termine their effects in the areas of relevance for the Group,
a collaborative initiative has been started with the Earth Sci-
RCP 8.5
ences department of the International Center for Theoretical
Physics (ICTP) of Trieste. As part of this collaboration, the
ICTP provides projections for the major climate variables with
a grid resolution of 50 km2 and a forecast horizon running
from 2030 to 2050. The main variables are average tempera-
tures, rainfall and snowfall and solar radiation. The first phase
of the study conducted in 2019 involved Italy and Spain, with
the consequent definition of a preliminary physical scenario.
Heating days (HD)
Cooling days (CD)
-14%
-17%
60%
80%
(6) The IPCC, founded in 1988 by the UNEP (United Nations Environment Program) and the WMO (World Meteorological Organization), is the main international
body for the assessment of climate change. The IPCC provides science-based climate analysis in order to support governments in developing policies to combat
climate change.
42
Consolidated Annual Report 2019 Spain
Acute phenomena: over the 2030-2050 period, heat waves
are expected to increase appreciably in frequency, with their
geographical spread expected to expand, especially in the
southern area of the country. Extreme rainfall will increase
in intensity but its frequency will decline. At the same time,
extreme snowfalls will largely remain located in the current
geographical areas but their frequency and intensity could de-
cline sharply.
Chronic phenomena: the average annual temperature is ex-
pected to increase over the 2030-2050 period in both the RCP
2.6 and 8.5 scenarios. In the RCP 8.5 scenario, the tempera-
ture is expected to rise by an average of 0.4 °C compared with
the RCP 2.6 scenario in the 2030-2050 period, with the dif-
ferential then widening significantly in the second half of the
century. In terms of heating days (HDs) and cooling days (CDs)
the 2030-2050 period will see HDs decrease by 6% and CDs
increase by 29% in the RCP 2.6 scenario, while the RCP 8.5
scenario will see a larger decline in HDs (-10%) and a larger
increase in CDs (+43%).
RCP 2.6
29%
-6%
-10%
43%
RCP 8.5
Heating days (HD)
Cooling days (CD)
The transition scenario
The transition scenario depicts the evolution of industrial and
business sectors in an economic, social and regulatory con-
text consistent with different trends in greenhouse gas (GHG)
emissions and, therefore, is correlated with the RCP 2.6 and
8.5 climate scenarios. The Group has therefore equipped it-
self with quantitative tools that incorporate assumptions re-
garding the context to produce corresponding projections for
energy demand, electricity demand, electricity production,
the penetration of renewables and electric vehicles, etc.: in
short, all the variables that characterize a national energy sys-
tem relevant to the Group’s activities.
In defining the transition scenarios, we distinguish between:
> assumptions concerning the global macroeconomic and
energy context in terms of commodity prices, interest
rates, gross domestic product etc., using international
benchmarks produced by entities such as the Internation-
al Energy Agency (IEA), Bloomberg New Energy Finance
(BNEF), International Institute for Applied Systems Analy-
sis (IIASA), etc. With regard to IIASA, for example, consid-
eration was given to the fundamentals driving the “Shared
Socioeconomic Pathways” (SSPs), in which general ener-
gy scenarios related to physical climatic scenarios are de-
veloped. The information deriving from the “SSPs” is used
to support long-term forecasts on commodity prices;
> assumptions concerning local policies and regulatory mea-
sures associated with the fight against climate change,
such as the reduction of carbon dioxide emissions, the ef-
ficiency of the energy system, the decarbonization of the
electricity sector, the reduction of oil consumption etc. For
Italy and Spain, reference is made to those countries’ inte-
grated National Energy and Climate Plans (NECPs), which
are also approved at the European level, while outside Eu-
rope, reference is made to the respective national energy
programs of the countries involved.
In order to define the transition scenario for the electricity
sector, the Group considers the elements described above
(physical scenarios, assumptions about the macro and ener-
gy context, regulatory developments) as prerequisites for the
assessment of future projections of electricity demand, elec-
tricity generation, renewables etc.
In this context, the effect of temperature on electricity de-
mand in the long term (2030-2050) has been estimated. Italian
electricity demand is provisionally forecast to increase on av-
erage by up to 5%, due to the combined effect of the chronic
increase in temperature and the transition of the system to-
wards greater electrification of energy consumption.
Reference scenario
43
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Physical scenario
Transition scenario
Temperature
Macro
Precipitation
Commodities
Wind
Regulatory
Irradiation
Technological
evolution
Energy
System
Model
Moreover, in the RCP 8.5 physical scenario the probability of
extremely hot years increases, leading to a future increase
of up to 10% in electricity demand, together with the risks
associated with more frequent extreme weather events. In
the case of Spain, however, over the same time horizon the
chronic effects would involve an average increase in demand
of around 2% and, in the possible peak year of the RCP 8.5
scenario, it could reach 4%. The smaller increase in electricity
demand in Spain compared with Italy mainly reflects the nar-
rower scope for the future electrification of consumption, as it
is currently already largely electrified as a consequence of the
presence of nuclear power in the country. These effects only
reflect the long-term impact of temperature on electricity de-
mand and the inertial evolution of the national energy system.
They do not consider the repercussions of climate change on
economies underscored in the IPCC’s special report on global
warming, which could also have indirect effects on economies
and, therefore, on electricity demand.
Effects on energy demand
(2030-2050)
Italy
RCP 2.6
RCP 8.5
Spain
RCP 2.6
RCP 8.5
～+5%
～7%
～3%
Up to +10%
～+2%
～ 2%
～2%
Up to +4%
Δ peak year
Average
44
Consolidated Annual Report 2019 Group strategy
The determination of the Group’s strategy is based on many
> strategic dialogue: a rolling process where key strategic
factors, beginning with an evaluation of the external environ-
issues are discussed separately from the typical strategic
ment. In particular, the following analyses are performed:
planning process, which in turn is enriched by the con-
> an analysis of macroeconomic, energy and climate scenar-
tinuous feedback of the strategic dialogue. It is part of a
ios: assessments and projections at the global and local
strategic design phase where communication between
levels to identify the main macroeconomic, energy and cli-
executives in the different businesses produces valuable
mate drivers in the short, medium and long term;
insight for the development of new strategic options, un-
> competitive landscape analysis: a comparison of the eco-
derscoring the need for cultural or organizational change
nomic, financial, industrial, ESG (Environmental, Social &
and synergies between businesses;
Governance) performance of companies in the utilities sec-
> assessment of ESG factors and results of materiality analy-
tor and other industries (for example, automotive, tech, oil
sis: Enel conducts materiality analysis using a well accept-
& gas) in order to monitor, shape and support the Group’s
ed methodology, taking account of the main standards in
competitive advantage and leadership position;
this area (Global Reporting Initiative - GRI and the Sustain-
> industrial vision: an overview of the macro-trends affecting
ability Accounting Standards Board - SASB) with the aim of
the company’s business, with an assessment of the po-
identifying the most important issues for both the Compa-
tential impacts on the Group’s business based on a broad
ny and for stakeholders (material issues) and to verify their
internal and external collaborative effort to identify actions
“alignment” or “misalignment” with external expectations
to prevent, adapt to and manage disruption and changes in
and internal importance.
our business.
The strategy of the Enel Group has proven its ability to create
The analysis of what is happening and what could happen in
sustainable long-term value, integrating the themes of sus-
the external environment underpins the phase of designing
tainability and close attention to climate change issues while
our strategic options and consequent positioning, which is
simultaneously ensuring a steady increase in profitability.
structured into the following main activities:
The Group is among the leaders guiding the energy transi-
> long-term positioning: evaluation of strategic options over
tion through the decarbonization of electricity generation and
a time horizon that extends beyond that used in industri-
the electrification of energy consumption, which represent
al planning, with (i) the definition and the quantitative and
opportunities both to increase value creation and to contrib-
qualitative development of alternative macroeconomic, en-
ute positively to more rapid achievement of the Sustainable
ergy and climate scenarios against which overall strategy
Development Goals set by the United National (SDGs) in the
can be assessed, and (ii) analysis based on stress testing
2030 Agenda.
for various factors, including the evolution of the industrial
sector, technology, competitive structure and policies;
Group strategy
45
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Strategic Plan
The new 2020-2022 Strategic Plan confirms this approach, ex-
> Industry, Innovation and Infrastructure (SDG 9);
plicitly integrating the SDGs into our financial strategy.
> Sustainable Cities and Communities (SDG 11);
By promoting a sustainable business model and behavior, the
> Climate Action (SDG 13).
Enel Group has the ambition to contribute to the achievement
of all the SDGs, leveraging SDG 17 (Strengthen the means of
The purpose-driven strategic pillars of the new Plan represent
implementation and revitalize the global partnership for sus-
the main industry trends and enabling factors connected with
tainable development) to foster global partnerships to tackle
the energy transition and the achievement of the SDGs.
the many challenges faced by the world today.
The trends in decarbonization and electrification, which are
More specifically, the investment plan is aimed directly at four
naturally connected with the generation and sale of electrici-
main SDGs that will account for more than 90% of the Group’s
ty, will be enabled by the development of increasingly digital
total investment in 2020-2022, equal to a total of €28.7 billion:
grids and the evolution towards a platform-based business
> Affordable and Clean Energy (SDG 7);
model and operational approach.
The pillars of the 2020-2022 Strategic Plan
I
N
O
T
A
V
O
N
N
I
46
Consolidated Annual Report 2019 Decarbonization
In terms of decarbonization, in a configuration of the scenar-
io(7) consistent with limiting global warming within the levels
established with the Paris Agreement, installed renewable
capacity should increase from 35% in 2018 to 69% in 2040
thanks to the progressive decline in production costs and to
the increased public awareness of climate issues. This evolu-
tion of the system towards more variable sources will require
greater flexibility to manage the balance between generation
and consumption. Accordingly, demand response and storage
technologies are also expected to grow significantly, also in
this case boosted by a steep decline in costs, which are ex-
pected to halve over the next 20 years.
The global context - Decarbonization
Global installed
capacity
Flexibility (GW)
65%
35%
2018
7.2
31%
69%
2040
15.5
Renewable capacity (TW)
Renewable
capacity
Conventional
capacity
+251%
200
145
57
2020
2030
2040
Storage (GW)
+4,280%
1,095
346
25
2020
2030
2040
(7) Sustainable Development Scenario IEA (International Energy Agency), Word Energy Outlook 2019.
Group strategy
47
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements In order to respond more effectively to the challenges posed
fore be achieved thanks to an acceleration of renewables
by the rapid growth of renewable energy, enabling the Group
development as well as the progressive decommissioning of
to effectively supplement and accelerate the evolution of
coal-fired plants. The objective is to achieve an entirely mar-
thermal generation, a common structure and management
ginal level of coal generation by 2030, with a 74% decrease in
team have been created for all power generation.
production as soon as 2022.
The major decarbonization objectives of the plan will there-
Progressive decrease in coal generation
Coal-fired generation TWh
Coal capacity GW
-74%
37.6
-58%
11.7
16.9
6.6
2019
2022
2019
2022
25.7%
16.4%
6.8%
Coal in total generation %
The target for increasing renewable capacity is expected to
> 3.6 GW will be developed to support our presence in re-
rise by 14.1 GW in 2020-2022 and will be achieved through a
cently opened market or in entirely new markets, both di-
number of strategic lines of development:
rectly and through joint ventures.
> 5.4 GW will be developed in countries such as Italy, Spain
Thanks to these initiatives, 60% of the Group’s total installed
and Chile, where new investments in renewable energy
capacity in 2022 will be renewable.
will support the decarbonization of our generation fleet;
In order to support the decarbonization process, the plan also
> 5.1 GW will mainly be developed in Brazil and the United
envisages a significant contribution from the new flexibility
States, where an increasing number of large customers
services provided by Enel X. Demand response capacity will
are moving from the regulated market to purchase elec-
expand from 6.3 GW in 2019 to over 10.1 GW in 2022, while
tricity from renewable sources primarily through long-
storage services will increase from the current 110 MW to
term power purchase agreements (PPA);
about 440 MW in 2022.
48
Consolidated Annual Report 2019201864.4201815.8 Electrification
Electrification which means the substitution of electricity for
other commodities in energy consumption will play a central
role in the Enel Group strategy.
In line with the IEA(8) sustainable development scenario, the
share of electricity in final global energy consumption should
reach 43% in 2040 (from 24% in 2018). This scenario assumes
a significant increase in the average annual investment for end
use, which in 2030-2040 should be almost 5 times that in 2018.
The opportunities deriving from this trend will involve a broad
spectrum of activities, ranging from distributed generation to
energy efficiency upgrading for buildings and electric vehicle
infrastructure, thus supporting the growth of companies that
move first.
Enel’s plan seeks to achieve a stable market share in the free
markets of European countries, supported by a 65% increase
in the number of customers and 21% growth in volumes sold
on the free market in 2022, mainly following the elimination
of regulated rates in Italy, which is currently scheduled to oc-
cur at the start of 2022. In South American countries such as
Brazil, Enel is already benefiting from the gradual opening of
the market with long-term contracts with existing customers.
Further impetus to the electrification process will come from
electric mobility, with the installation of about 736,000 re-
charging points by 2022, and more generally from the new
services offered by Enel X.
The global context - Electrification
Electricity consumption
as percentage of total
energy consumption
Annual investment
(USD trillion)
Electricity
consumption
57%
Other
43%
2040
76%
24%
2018
+375%
1.0
1.9
2018
2019-2030
2031-2040
(8) Sustainable Development Scenario IEA (International Energy Agency), Word Energy Outlook 2019.
Group strategy
49
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements0.4 Enablers
In order to adequately support value creation from these two
macro trends, the plan identifies distribution grids as one of
the main enablers. The evolution of the role of distributors will
be a key factor in supporting the greater complexity involved
with distributed renewable generation and electric mobility, in
managing the digitalization process driven by innovative ser-
vices offered to customers and in ensuring the resilience of the
energy system in view of the impacts of climate change.
Enel’s goal is to make grids more resilient and flexible and im-
prove service quality. The average system interruption frequen-
cy rate is expected to decrease by 9% in three years, with a
simultaneous efficiency drive that will decrease opex per cus-
tomer by 17% in the same period. The plan provides for the
number of Smart 2.0 meters to more than double, from 13.1
million to 28.8 million.
Evolution of the main distribution KPIs
Digitalization
Smart meters 2.0 (mln)
Service quality
SAIFI (no.)
Efficiency
Opex/Customer (€)
>2x
28.8
2022
-9%
2.9
2022
-17%
35.6
2022
50
Consolidated Annual Report 201913.1201920193.2201942.9 In parallel, the Group will invest around €2.5 billion over the three-
On the retail end, Enel will build its operating model around prod-
year period in platforms, mainly linked to the evolution of grids,
ucts and services, rather than local markets. The global platform
the market and Enel X. The Group’s strategy is based on the op-
will enable the standardization of back-end and front-end pro-
portunity to reap the benefits of the platformization of its busi-
cesses and systems and the development of global products.
ness operations or new business models.
Enel X is a business model that was conceived as a platform by
For grids, a global platform means standardizing operations and
design, where innovative products and services are developed
maintenance, customer management processes and the alloca-
and delivered globally to our customers. This represents an op-
tion of resources and systems, enabling global optimization and
portunity for rapid scalability.
convergence towards a plug & play model that can be exported
when new grids are acquired.
Group strategy
51
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The new Strategic Plan, which is focused on sustainable busi-
persistent economic instability, by around €0.9 billion. Owing
nesses, incorporates a substantial improvement in our risk
in part to the new growth scenarios for energy volumes in the
profile, consistent with the “sustainability = value” strategic
South American countries, these developments are associat-
paradigm.
ed with the benefit of volumes already contracted or related
Thanks to the measures launched to progressively reduce
to regulated markets. In absolute terms, over the 2020-2022
coal-fired generation, the decarbonization strategy is expect-
period some 80% of the cumulative €58 billion of EBITDA
ed to reduce EBITDA at risk by about €0.5 billion over the
will be generated by regulated or already contracted activ-
2020-2022 horizon of the plan. At the same time, the plan
ities, and therefore only 20% is exposed to merchant risk.
has revised the contribution of Argentina, which is afflicted by
Distribution
Retail
Enel X
Global
Activities
Asset
Owner
Asset
Operator
Customer
Management
Front
End
Pruducts
Customers
Prosumers
Digital
Layer
Digital
Layer
Digital
Layer
Physical
Assets
Buy
Sell
Back
End
Standardized
Back Office
Suppliers
& Partners
Cities
Assets
(e.g. Charging Stations)
52
Consolidated Annual Report 2019 With regard to the expected growth in renewable capacity
generation. The risk associated with possible developments
(equal to 14.1 GW), while the gap to the target is just 5.3
in the prices of commodities connected with thermal gen-
GW, we can count on the existing pipeline of about 20 GW
eration is in fact greater than that associated with variance
for the 2020-2022 period. Furthermore, about 60% of cumu-
of renewable sources, while Enel can also count on natural
lative generation is already secured, with prices in line with
geographic hedging.
plan assumptions, while the retail customer base will natu-
To pursue our strategic objectives, organic investment will
rally hedge the remaining 40%. In addition, the progressive
increase by 11% compared with the previous plan, raising
increase in renewable generation will produce a correspond-
EBITDA by 13% to €20.1 billion in 2022.
ing reduction in the level of risk associated with electricity
Distribution
Retail
Enel X
Global
Activities
Asset
Owner
Asset
Customer
Operator
Management
Front
End
Pruducts
Customers
Prosumers
Digital
Layer
Digital
Layer
Digital
Layer
Physical
Assets
Buy
Sell
Back
End
Standardized
Back Office
Suppliers
& Partners
Cities
Assets
(e.g. Charging Stations)
Group strategy
53
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Thanks to the strategies it is deploying, the Group will be
confirms the potential inherent in the Group’s sustainability
able to achieve ordinary low carbon EBITDA of €18.3 billion
strategy, in this case lowering the cost of debt.
in 2022, which will bring the contribution of low-carbon prod-
Together with improved operating performance, the ongoing
ucts, services and technologies to 91% of the total. Over the
effort in managing finance operations and the simplification
course of the plan, in line with the EBITDA targets, more than
of Enel’s structure will generate a 27% increase in net in-
90% of capital expenditure will be allocated for low-carbon
come. And debt will increase by just 3% despite the expan-
products, services and technologies.
sion of investment.
The strategy set out in the 2020-2022 plan is therefore based
The progressive de-risking of our activities and the significant
on the belief that the accurate and timely assessment of the
visibility of profits give us the confidence to confirm not only
main trends performed by the Enel Group is crucial for en-
our three-year guaranteed minimum dividend per share policy,
suring sustainability and growth into the future. One exam-
but also to establish a new minimum guaranteed dividend per
ple of this is the Enel Group’s recent placement of the first
share of €0.40 in 2022, confirming the soundness of Enel’s sus-
bond linked to achievement of the SDGs. This bond, which
tainable strategy, which will produce an average growth rate for
was placed at a lower cost compared with an ordinary issue,
profits and dividends of over 8.0% in 2019-2022.
Group's key financial targets
Organic
capex (€bn)
EBITDA
(€bn)
Net income
(€bn)
+11%
28.7
+12%
20.1
+27%
Net debt
(€bn)
+4.7%
47.3
2020-22
2022
6.1
2022
2022
54
Consolidated Annual Report 201925.92019-2117.920194.8201945.22019 The Group has also created the following indicator of develop-
following SDGs: 2.5 million beneficiaries of quality education
ments in the energy transition.
in 2015-2030 (SDG 4); 10 million beneficiaries of clean and
Many of these indicators contribute to the achievement of
accessible energy in 2015-2030 (SDG 7.1); 8 million benefi-
SDG 13.
ciaries of decent work and lasting, inclusive and sustainable
The Group is fully convinced that climate change can still be
economic growth in 2015-2030 (SDG 8).
limited. The energy transition is well advanced, and to date all
People centricity is one of the pillars of Enel’s sustainability
stakeholders are involved in the shared challenge of decar-
strategy. We pay great attention to our people, setting spe-
bonizing the sector. With the steady progress in the transition
cific objectives designed to strengthen their roles and skills
from fossil fuels to renewable energy, the electrification of
and provide the tools for managing the energy transition, with
the economy and energy consumption will continue to accel-
clear and precise goals in terms of performance assessments
erate. This will generate sustained growth in demand in the
and business climate. We work to promote upskilling and re-
medium and long term, ensuring that society has cleaner and
skilling programs aimed at supporting the energy transition as
more accessible energy.
well as the development of digital skills, pursuing the goal of
The Group continues to promote the economic and social
involving 100% of personnel in training devoted to this theme.
growth of the local communities in which it operates, con-
The Group also aims to promote diversity by having 50% fe-
firming and strengthening its specific commitments for the
male participation in selection processes by 2022.
Main non-financial indicators 2022
Principali indicatori non finanziari 2022
60%
Renewable capacity
as % of total capacity(1)
220 g/kWheq
CO2 emissions
per kWheq generated
a l P o
b
G l o
n
w er Generatio
Distribution
grid users
75 mln
Smart meters 2.0
28.8 mln
G
l
o
b
a
l
&
I
n
N
f
r
e
a
t
w
o
s
tru
s
rk
cture
al
b
o
l
G
T
r
a
d
i
n
g
E
n
e
l
X
Retail
Retail free-market
customers(2)
35 mln
10.1 GW
Demand response
capacity managed
736 k
Electric mobility
charging points
(1) Including nuclear.
(2) Power & Gas.
Group strategy
55
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
The management of decarbonization and people as well as
reduction of atmospheric emissions and consumption and the
communities is consistent with the “just transition” commit-
promotion of biodiversity.
ment promoted by the United Nations and signed by Enel’s
Finally, technological transformation cannot be divorced from
CEO in July 2019.
serious concerns about cyber security, where the Group con-
Clear objectives have also been set for increasing attention
firms its objectives for disseminating cutting-edge solutions
to workplace health and safety, to promoting a sustainable
supported by associated verification measures (ethical hack-
supply chain, to forging an increasingly integrated governance
ing, vulnerability assessment, etc.), and fostering an effective
structure and to managing environmental impact through the
IT security culture.
Assessment of the risks and opportunities
connected with the Strategic Plan
The process of defining the Group’s strategies is accompa-
risk models of the Strategic Plan presented at the end of 2018.
nied by an accurate analysis of the risks and opportunities
Focusing on the stochastic risk analysis for the Strategic Plan,
connected with those strategies.
exchange rates and the volatility of energy and commodity pric-
Identifying those risks and opportunities within the Enel
es represent almost all the volatility of the drivers. In particular,
Group’s strategic and industrial planning process is designed
in addition to the dollar the most impacting currencies are the
to span the horizon of the Plan in an integrated manner.
Argentine peso, the Colombian peso and the Brazilian real.
Although the strategy underlying the Plan, as described
Nevertheless, the Group’s very structure ensures that the vol-
above, envisages a phase of careful analysis and verification
atility of the South American currencies has only a negligible
of the strategic risk factors and variables, it retains scenario
impact on net income, as demonstrated in the presentation at
assumptions regarding future events that will not necessarily
the Capital Markets Day. Italy and Spain represent more than
occur, as they depend on variables that cannot be controlled
half of the Group’s risk in terms of the impact of the volatility
by management. Upside and downside developments may
of energy prices and commodity price fluctuations on margins.
occur as time unfolds.
Examining the other risk factors, we can see that geographi-
Before being able to approve the Strategic Plan, a quantita-
cal diversification significantly reduces the exposure to the risk
tive analysis of the risks and opportunities associated with the
associated with renewable resources – a highly positive factor
Group’s strategic positioning is presented annually to the Con-
considering the Group’s positioning and the steady expansion of
trol and Risk Committee appointed by the Board of Directors.
renewable generation – while macroeconomic risks such as infla-
In particular, risk factors such as exchange rates, inflation, pric-
tion and electricity demand are less significant than the others.
es and volumes, regulatory developments, industrial growth,
In general, the Group can rely on a number of implicit correla-
customer portfolio and efficiency, weather and climate events
tions between risk factors to create diversification effects that
and risks connected with the competition are identified.
significantly mitigate total exposures. These include our geo-
Based on the nature of the risk and opportunity drivers, the
graphical diversification, or developments in exchange rates
analytical approach that best represents their volatility is se-
and inflation rates, or those in commodity prices and their im-
lected. In practice, we perform probabilistic analysis for all
pact on generation costs and revenue.
those variables whose market time series provide a robust
With regard to the risk factors estimated deterministically,
foundation to estimate levels of correlation and representative
note:
volatility for future risk, and a deterministic analysis(9) based
> the monitoring of all possible regulatory issues, including
on what-ifs and expert judgments of the possible evolution
those connected with climate legislation, is crucial for as-
of the business with respect to the main risk factors for the
sessing any upside or downside impact on the Group;
execution of the Business Plan.
> the estimates based on stress testing of the drivers of in-
The validity of the results is also monitored with ex-post anal-
dustrial growth (mainly renewables and grids);
yses by risk cluster. In 2019, most of the actual upside and
> the estimates of the impact of not achieving the customer
downside events fell well within the limits estimated by the
portfolio (retail markets and Enel X).
(9) Stochastic analysis conducted with the Monte Carlo method.
56
Consolidated Annual Report 2019 Risk management
Due to the nature of its business, the Group is exposed to a
at all levels of the Group are made in an informed manner
variety of risks, notably financial risks, industrial and environ-
consistent with the associated risks (including those connect-
mental risks, strategic risk connected with the evolution of
ed with climate change). To this end, the Board draws on the
markets and risks connected with sustainability and climate
expertise of the Control and Risk Committee, which issues
change.
prior opinions on a variety of matters, including the guidelines
In order to effectively deal with such risks, Enel has adopt-
of the ICRMS.
ed an internal control and risk management system (ICRMS).
The Group also has specific internal committees composed of
This system is the set of rules, procedures, and organizational
senior management personnel that are responsible for govern-
structures aimed at identifying, measuring, monitoring and
ing and overseeing risk management, monitoring and control.
managing the main risks applicable to the Group.
The Board of Directors performs a policy-setting role and is
The following discusses the main types of risks and opportu-
committed to developing guidelines to ensure that decisions
nities facing the Group.
Strategic risks connected with the market
and the competitive environment
The markets and businesses in which the Group operates are
ergy vector, competition driven by contiguous sectors is also
exposed to steadily growing competition and evolution, from
rising, although this offers utilities the opportunity to move
both a technological and regulatory point of view, with the tim-
into new businesses.
ing of these developments varying from country to country.
The Group constantly monitors developments in the competi-
As a result of these processes, Enel is exposed to growing
tive environment and the market in order to tailor its strategic
competitive pressure and, as electricity is this century’s en-
development to this evolution.
Regulatory risks
The Group operates in regulated markets and changes in the
tors, Enel has intensified its relationships with local gover-
operating rules of the various systems, as well as the pre-
nance and regulatory bodies, adopting a transparent, collab-
scriptions and obligations characterizing them, impact the op-
orative and proactive approach in addressing and eliminating
erations and performance of the holding company.
sources of instability in the regulatory framework.
In order to manage the risks associated with regulatory fac-
Country risk
The Group has a major international presence, with some
crises that may impact the continuity of the supply of ma-
50% of its revenue being generated abroad in a variety of
terials or commodities, migratory flows or economic activity
currencies. In addition to changes in global macroeconomic
are also considered given that the impacts depend so closely
and financial conditions, cash flows and corporate assets are
on economic, social and even energy conditions in individual
also exposed to idiosyncratic risk factors, such as exchange
countries.
rate volatility and changes in the economic, political, social
For a detailed analysis of this class of risk, please see the
and financial conditions in the various countries in which Enel
section “Reference scenario”.
operates. Global risks associated with pandemics or other
Risk management
57
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Financial risks
As part of its operations, Enel is exposed to a variety of finan-
agement, monitoring and control processes, ensuring compli-
cial risks that, if not appropriately mitigated, can directly impact
ance with the principle of organizational separation of units re-
our performance. These include commodity risk, exchange rate
sponsible for operations and those in charge of monitoring and
risk, interest rate risk, credit risk and liquidity risk.
managing risk.
The financial risk governance arrangements adopted by Enel
The financial risk governance system also defines a system of
establish specific internal committees, composed of top man-
operating limits at the Group and individual Region, Country
agement and chaired by the Chief Executive Officers of the
and Global Business Line levels for each risk, which are moni-
companies involved (including Enel SpA), which are responsi-
tored periodically by risk management units. For the Group, the
ble for policy setting and supervision of risk management, as
system of limits constitutes a decision-making tool to achieve
well as the definition and application of specific policies at the
its objectives.
Group and individual Region, Country and Global Business Line
For further information on the management of financial risks,
levels that establish the roles and responsibilities for risk man-
please see note 44 of the consolidated financial statements.
Enel operates in energy markets and for this reason is exposed to changes in the prices of fuel and
electricity, which can have a significant impact on its results if not managed effectively.
To mitigate this exposure, the Group has developed a strategy of stabilizing margins by contracting for
supplies of fuel and the delivery of electricity to end users or wholesalers in advance.
Enel has also implemented a formal procedure that provides for the measurement of the residual
commodity risk, the specification of a ceiling for maximum acceptable risk and the implementation
of a hedging strategy using derivatives on regulated markets and over-the-counter (OTC) markets. The
commodity risk management process allows us to limit the impact on margins of unexpected changes
in market prices and, at the same time, provides an adequate degree of flexibility to enable use to seize
short-term opportunities.
In order to mitigate the risk of interruption of fuel supplies, the Group has developed a strategy of
diversification of supply sources, using suppliers located in different geographical areas.
In view of the geographical diversification of access to international markets for the issuance of debt
instruments and transactions in commodities, Group companies are exposed to the risk that changes
in exchange rates between the currency of account and other currencies could generate unexpected
changes in the performance and financial position aggregates in their respective financial statements.
Given the current structure of Enel, the exposure to exchange rate risk is mainly linked to the US dollar
and is attributable to:
> cash flows in respect of the purchase or sale of fuel or electricity;
> cash flows in respect of investments, dividends from foreign subsidiaries or the purchase or sale of
equity investments;
> cash flows connected with commercial relationships;
> financial assets and liabilities.
The Group’s consolidated financial statements are also exposed to the exchange rate risk deriving from
the conversion into euros of the items relating to investments in companies whose currency of account
is not the euro (translation risk).
The exchange rate risk management policy is based on systematically hedging the exposures to which
the Group companies are exposed, with the exception of translation risk.
Appropriate operational processes ensure the definition and implementation of appropriate hedging
strategies, which typically employ financial derivatives obtained on OTC markets.
Controlling risk using dedicated processes and indicators makes it possible to limit potential adverse
financial impacts while optimizing management of the cash flows of the portfolios.
Commodity risk
Exchange risk
58
Consolidated Annual Report 2019 Interest rate risk
Credit risk
Liquidity risk
The Group is exposed to the risk that changes in the level of interest rates could produce unexpected
changes in net financial expense or the value of financial assets and liabilities measured at fair value.
The exposure to interest rate risk derives mainly from the variability of the terms of financing, in the
case of new debt, and from the variability of the cash flows in respect of interest on floating-rate debt.
The policy for managing interest rate risk seeks to contain financial expense and its volatility by
optimizing the Group’s portfolio of financial liabilities and by obtaining financial derivatives on OTC
markets.
Managing risk through the use of specific processes and indicators enables us to limit any adverse
financial impact and, at the same time, to optimize the debt structure with an appropriate degree of
flexibility.
Commercial, commodity and financial transactions expose the Group to credit risk, i.e. the possibility
of a deterioration in the creditworthiness of our counterparties that could have an adverse impact on
the expected value of the creditor position and, for trade receivables only, increase average collection
times.
The exposure to credit risk is attributable to the following types of operations:
> the sale and distribution of electricity and gas in free and regulated markets and the supply of goods
and services (trade receivables);
> trading activities that involve the physical exchange of assets or transactions in financial instruments
(the commodity portfolio);
> trading in derivatives, bank deposits and, more generally, financial instruments (the financial portfolio).
The policy for managing credit risk associated with commercial activities and commodity transactions
provides for a preliminary assessment of the creditworthiness of counterparties and the adoption of
mitigation instruments, such as obtaining guarantees.
Managing risk through the use of specific risk indicators, and limits where possible, ensures that
the economic and financial impacts associated with a possible deterioration in creditworthiness are
contained within sustainable levels. At the same time, the necessary flexibility to optimize portfolio
management is preserved.
In addition, the Group undertakes transactions to assign receivables without recourse, which results in
the complete derecognition of the corresponding assets involved in the assignment.
Finally, with regard to financial and commodity transactions, risk mitigation is pursued through the
diversification of the portfolio (preferring counterparties with a high credit standing) and the adoption
of specific standardized contractual frameworks that contain risk mitigation clauses (e.g. netting
arrangements) and possibly the exchange of cash collateral.
Liquidity risk is the risk that the Group, while solvent, would not be able to discharge its obligations in
a timely manner or would only be able to do so on unfavorable terms owing to situations of tension
or systemic crises (credit crunches, sovereign debt crises, etc.) or changes in the perception of Group
riskiness by the market.
Among the factors that define the risk perceived by the market, the credit rating assigned to Enel by
rating agencies plays a decisive role, since it influences its ability to access sources of financing and
the related financial terms of that financing. A deterioration in the credit rating could therefore restrict
access to the capital market and/or increase of the cost of funding, with consequent negative effects on
the performance and financial situation of the Group.
In 2019, Fitch revised its rating for Enel upwards, from “BBB+” to “A-”. Moody’s also improved its
outlook for Enel’s rating from stable to positive during the year. Accordingly, at the end of the year, Enel’s
rating was: (i) “BBB+” with a stable outlook for Standard & Poor’s; (ii) “A-” with a stable outlook for Fitch;
and (iii) “Baa2” with a positive outlook for Moody’s.
Enel’s liquidity risk management policies are designed to maintain a level of liquidity sufficient to meet
its obligations over a specified time horizon without having recourse to additional sources of financing
as well as to maintain a prudential liquidity buffer sufficient to meet unexpected obligations. In addition,
in order to ensure that the Group can discharge its medium and long-term commitments, Enel pursues
a borrowing strategy that provides for a diversified structure of financing sources to which it can turn
and a balanced maturity profile.
Risk management
59
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Risks connected with human capital
The profound transformations of the energy sector, which has
as well as the promotion of reskilling and upskilling programs
experienced sweeping technological developments, require
for employees in order to support the energy transition; the
companies in the industry to recruit people with new experi-
effective involvement of employees in the pursuit of the cor-
ence and professional skills, as well as imposing the need for
porate purpose, which ensures the achievement of better
major cultural and organizational changes. Organizations must
results while offering greater satisfaction to our people; the
move to adopt new, agile and flexible business models. Poli-
development of systems for evaluating the working environ-
cies to enhance diversity and to manage and promote talent
ment and performance; the dissemination of diversity and in-
have become key factors for companies that are managing
clusion policies to all countries in which the Group operates,
the transition and have a widespread geographical presence.
as well as instilling an inclusive organizational culture based
Enel places the people who work for it at the center of its
on the principles of non-discrimination and equal opportunity,
business model: the management of human capital is a pri-
a key driver in ensuring that everyone can make an effective
ority for which specific objectives have been established. The
contribution. In addition, Enel is developing specific initiatives
main goals include: the development of the digital capabilities
to foster the diffusion of agile working methods in business
and skills made necessary by the Fourth Industrial Revolution,
processes.
60
Consolidated Annual Report 2019 Risks connected with digital technology
The speed of technological developments that constantly generate new challenges, the ever increasing
frequency and intensity of cyber attacks and the attraction of critical infrastructures and strategic
industrial sectors as targets underscore the potential risk that, in extreme cases, the normal operations
of companies could grind to a halt. Cyber attacks have evolved dramatically in recent years: their
number has grown exponentially, as has their complexity and impact, making it increasingly difficult to
promptly identify the source of threats. In the case of the Enel Group, this exposure reflects the many
environments in which it operates (data, industry and people), a circumstance that accompanies the
intrinsic complexity and interconnection of the resources that over the years have been increasingly
integrated into the Group’s daily operating processes.
The Group has adopted a holistic governance approach to cyber security that is applied to all the sectors
of IT (Information Technology), OT (Operational Technology) and IoT (Internet of Things). The framework
is based on the commitment of top management, on global strategic management, on the involvement
of all business areas as well as on the units involved in the design and management of our systems. It
seeks to use cutting edge technologies, to design ad hoc business processes, to strengthen people’s
IT awareness and to implement regulatory requirements for IT security.
In addition, the Group has developed an IT risk management methodology founded on “risk-based”
and “cyber security by design” approaches, thus integrating the analysis of business risks into all
strategic decisions. Enel has also created its own Cyber Emergency Readiness Team (CERT) in order to
proactively respond to any IT security incidents.
Finally, in 2019, the Group also took out an insurance policy for cyber security risks in order to mitigate
IT threats.
The Group is carrying out a complete digital transformation of how it manages the entire energy value
chain, developing new business models and digitizing its business processes. A consequence of this
digital transformation is that the Group is increasingly exposed to risks related to the functioning of the
IT systems implemented throughout the Company, which could lead to service interruptions or data
losses.
These risks are managed using a series of internal measures developed by the Global Digital Solutions
(GDS) unit, which is responsible for guiding the Group’s digital transformation. It has set up an internal
control system that introduces control points along the entire IT value chain, enabling us to prevent the
emergence of risks engendered by such issues as the creation of services that do not meet business
needs, the failure to implement adequate security measures and service interruptions. The internal
control system of the Global Digital Solutions unit oversees both the activities performed in-house and
those outsourced to external associates and service providers. Furthermore, Enel is promoting the
dissemination of a digital culture and digital skills within the Group in order to successfully guide the
digital transformation and minimize the associated risks.
Cyber attacks
Digitalization, IT
effectiveness and
service continuity
Risk management
61
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Risks connected with the protection
of personal data
The collection and processing of personal data represents one
appropriately can cause financial losses and reputational harm.
of the biggest challenges in the era of digitalization and global-
In order to manage and mitigate this risk, Enel has adopted
ization of markets. The Group has taken up this challenge by
a structure designed to fully protect the personal data of all
accelerating the digital transformation process while rapidly
the individuals with whom we interact. This effort is sustained
expanding the number of customers and geographical scope
by our Data Protection Officers, who are responsible for sup-
of operations at the global level. This naturally increases our ex-
porting the business areas in the adoption of a “privacy by
posure to the risks connected with the protection of personal
design” approach, in which the protection of personal data
data, an issue that must also take account of the substantial
is a key element of the design of any initiative or business
growth in privacy legislation: implementing these regulations in-
process.
Environmental risks
Last year saw the continuation of the growth in the sensitivity
ment systems across the entire Group ensures the imple-
of the entire community to risks connected with development
mentation of structured policies and procedures to identify
models that generate environmental impacts and exploit scarce
and manage the environmental risks and opportunities asso-
natural resources (including many raw materials and water).
ciated with all corporate activities.
In response to these needs, governments have imposed in-
Also contributing are the multitude of actions to achieve
creasingly restrictive environmental regulations, placing ever
the challenging environmental improvement objectives set
more stringent constraints on the development of new indus-
by Enel, such as, for example, those regarding atmospheric
trial initiatives and, in the most impactful industries, incentiv-
emissions, waste production and water consumption, espe-
izing or requiring the elimination of technologies no longer
cially in areas with high water stress.
considered sustainable.
The risk of water scarcity is directly mitigated by Enel’s devel-
In this context, companies in every sector, and above all in-
opment strategy, which is based on the growth of generation
dustry leaders, are ever more aware that environmental risks
from renewable sources that are essentially not dependent
are increasingly economic risks. As a result, they are called
on the availability of water for their operation. Special atten-
upon to increase their commitment and accountability for
tion is also devoted to assets in areas with a high level of
developing and adopting innovative and sustainable technical
water stress, in order to develop technological solutions to
solutions and development models.
reduce consumption.
Enel has made the effective prevention and minimization of
Finally, ongoing collaboration with local river basin manage-
environmental impacts and risks a foundational element of
ment authorities enables us to adopt the most effective
each project across its entire life cycle.
shared strategies for the sustainable management of hydro-
The adoption of ISO 14001-certified environmental manage-
electric generation assets.
62
Consolidated Annual Report 2019 Strategic risks and opportunities connected
with climate change
The identification and
management of risks connected
with climate change
Climate change and the energy transition will impact Group
activities in a variety of ways.
output, while alterations in rainfall or wind conditions could
impact the Group’s business by increasing or decreasing po-
tential electricity generation.
The energy transition towards a more sustainable model char-
acterized by a gradual reduction of CO2 emissions has risks
and opportunities connected both with changes in the regula-
In order to identify the main types of risk and opportunity and
tory and legal context and trends in technology development,
their impact on the business associated with them in a struc-
electrification and the consequent market developments.
tured manner consistent with the TCFD, we have adopted a
Consistent with the climate and transition scenarios used by
framework that explicitly represents the main relationships
Enel to determine risks and opportunities, the main transi-
between scenario variables and types of risk and opportunity,
tion-related phenomena are beginning to emerge in relation
specifying the strategic and operational approaches to man-
to customer behavior, industrial strategies being adopted in all
aging them, comprising mitigation and adaptation measures.
economic sectors and regulatory policies. Between 2020 and
There are two main macro-categories of risks/opportunities:
2030, the transition trends will become visible in response to
those connected with developments in physical variables and
the evolution of the context: the Enel Group has decided to
those linked to the evolution of the transition scenarios.
facilitate the transition, and is therefore ready to seize all the
Physical risks are divided in turn between acute (i.e. extreme
opportunities that may arise from an acceleration in that tran-
events) and chronic, with the former linked to extremely in-
sition. As discussed previously, our strategic choices, which
tense meteorological conditions and the latter to more gradual
are already strongly oriented towards the energy transition, to
but structural changes in climate conditions.
which we have dedicated more than 90% of investments, en-
Extreme events expose the Group to the risk of prolonged
able us to incorporate risk mitigation and opportunity maximi-
unavailability of assets and infrastructure, the cost of restoring
zation “by design”, adopting a positioning that takes account
service, customer disruptions and so on. Chronic changes in
of the medium and long-term phenomena we have identified.
climate conditions expose the Group to other risks or oppor-
The strategic choices are accompanied by the operating best
tunities: for example, structural changes in temperature could
practices adopted by the Group.
cause changes in electricity demand and have an impact on
Risk management
63
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Framework on the main risks and opportunities
SCENARIO
PHENOMENA
TIME
HORIZON
RISK &
OPPORTUNITY
CATEGORY
DESCRIPTION
IMPACT
MANAGEMENT
APPROACH
Acute physical
Extreme events
Starting with
short term (1-3
years)
Risk: especially
extreme weather/
climate events.
Extreme events can
damage assets and interrupt
operations.
Chronic physical
Market
Starting with
long term
(2030-2050)
Risk/opportunity:
increase or decrease
in electricity demand;
increase or decrease in
output.
Electricity demand is also
affected by temperature,
whose fluctuation can
impact our business.
Transition
Starting with
medium term
(2022-2030)
Policy
& Regulation
Policies concerning the
energy transition and
resilience can impact the
volume of and returns on
investments.
Risk/opportunity:
policies on CO2
prices and emissions,
energy transition
incentives, greater
scope for investment
in renewables and
resilience regulation.
The Group adopts best practices to manage
the restoration of service as quickly as possible.
We also work to implement investments
in resilience (for Italy). With regard to risk
assessment in insurance, the Group has a
loss prevention program for property risk that
also assesses the main exposures to natural
events. Looking forward, the assessments will
also include the potential impacts of long-term
trends in the most significant climate variables.
The Group’s geographical and technological
diversification means that the impact of
changes (positive and negative) in a single
variable is mitigated at the global level. In
order to ensure that operations always take
account of weather and climate phenomena,
the Group adopts a range of practices such
as, for example, weather forecasting, real-time
monitoring of plants and long-term climate
scenarios.
The Group is minimizing its exposure to risks
through the progressive decarbonization
of its generation fleet. The Group’s strategic
actions, which are focused on investment
in renewables, networks and customers,
enable us to mitigate potential threats and
exploit the opportunities connected with the
energy transition. The Group is also actively
contributing to the formation of public policies.
64
Consolidated Annual Report 2019
SCENARIO
PHENOMENA
TIME
HORIZON
RISK &
OPPORTUNITY
CATEGORY
DESCRIPTION
IMPACT
MANAGEMENT
APPROACH
Transition
Market
Starting with
medium term
(2022-2030)
Transition
Starting with
medium term
(2022-2030)
Products &
Services
Technology
Starting with
medium term
(2022-2030)
Risk/opportunity:
changes in the prices
of commodities and
energy, evolution of
energy mix, changes
in retail consumption,
changes in competitive
environment.
Opportunity: increase
in margins and greater
scope for investment
as a consequence of
the transition in terms
of greater penetration
of new electrical
technologies for
residential consumption
and electric
transportation.
Considering two alternative
transition scenarios, the
Group assesses the impact
of trends in the proportion
of renewable sources in the
energy mix, electrification
and the penetration of EVs
to estimate their potential
impacts.
Trends in the electrification of
transportation and residential
consumption will potentially
have an impact on our
business.
Considering two alternative
transition scenarios, the
Group assesses the
potential opportunities to
scale up current businesses
in response to trends
in the electrification of
transportation.
The Group is maximizing opportunities
by adopting a strategy founded on the
energy transition and the rapid expansion
of renewable generation and the
electrification of energy consumption.
The Group is maximizing opportunities
thanks to its strong positioning in new
businesses and services.
The Group is maximizing opportunities
thanks to its strong positioning in global
networks.
The framework illustrated above also highlights the relation-
in which chronic structural changes in the climate should begin
ships that link the physical and transition scenarios with the
to emerge. The main sources of risk and opportunity identified,
potential impact on the Group’s business. These effects can be
the best practices for the operational management of weather
assessed from the perspective of three time horizons: the short
and climate phenomena, and the qualitative and quantitative
term (1-3 years), in which sensitivity analyses based on the Stra-
impact assessments performed to date are discussed below.
tegic Plan presented to investors in 2019 can be performed; the
As declared by the TCFD, the process of disclosing information
medium term (until 2030), in which it is possible to assess the
on the risks and opportunities connected with climate change
effects of the energy transition; and the long term (2030-2050),
will be gradual and incremental from year to year.
Risk management
65
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
SCENARIO
PHENOMENA
RISK &
OPPORTUNITY
CATEGORY
DESCRIPTION
TIME
HORIZON(1)
IMPACT
GBL AFFECTED
SCOPE
QUANTIFICATION -
TYPE OF IMPACT
UPSIDE/
DOWNSIDE
QUANTIFICATION - RANGE
<100 €MLN
100-300 €MLN >300 €MLN
Global Power
Generation
Group
EBITDA/year
Group
Potential
hydroelectric
output
EBITDA/year
Global Power
Generation
Potential wind
EBITDA/year
Group
output
Group
output
Potential solar
EBITDA/year
+1%
Upside
-1%
Downside
+10%
Upside
-10%
Downside
+10%
Upside
-10%
Downside
+10%
Upside
-10%
Downside
Chronic physical
Market
Risk/opportunity:
increase or decrease in
electricity demand.
Short term
Chronic physical
Market
Risk/opportunity:
increase or decrease in
renewables generation.
Short term
(1) Time horizon: short (2020-2022); medium (up to 2030); long (2030-2050).
Electricity demand is also affected by temperature,
whose fluctuations can have an impact on our
business. Although structural changes should not
emerge in the short/medium-term, in order to assess
the sensitivity of Group performance to potential
temperature variations, we have performed an analysis
of sensitivity to changes of +/-1% in electricity demand
for the Group as a whole.
Renewables generation is also affected by the
availability of resources, whose fluctuations can
have an impact on our business. Although structural
changes should not emerge in the short/medium-
term, in order to assess the sensitivity of Group
performance to potential temperature variations,
we have performed an analysis of sensitivity to
changes of +/-10% in potential electricity output
by technology.
Chronic and acute physical
phenomena: repercussions on our
business, risks and opportunities
Taking the IPCC scenarios as our reference point, developments
Chronic physical changes creating risks
and opportunities
The climate scenarios developed with the ICTP do not provide
definitive indications of structural changes before 2030, but
changes could begin to emerge between 2030 and 2050.
in the following physical variables and the associated operational
The main impacts of chronic physical changes would be reflect-
and industrial impacts connected with potential risks and oppor-
ed in the following variables:
tunities are assessed.
> Electricity demand: variation in the average temperature level with a potential increase or reduction
in electricity demand.
> Thermal generation: variation in the level and average temperatures of the oceans and rivers, with
effects on thermal generation.
> Hydroelectric generation: variation in the average level of rainfall and snowfall and temperatures with
a potential increase or reduction in hydro generation.
> Solar generation: variation in the average level of solar radiation, temperature and rainfall with a
potential increase or reduction in solar generation.
> Wind generation: variation in the average wind level with a potential increase or reduction in wind
generation. The Group will work to estimate the relationships between changes in physical variables
and the change in the potential output of individual plants in the different categories of generation
technology.
Variables
impacted by
chronic physical
changes
66
Consolidated Annual Report 2019
SCENARIO
PHENOMENA
RISK &
CATEGORY
OPPORTUNITY
DESCRIPTION
TIME
HORIZON(1)
IMPACT
GBL AFFECTED
SCOPE
QUANTIFICATION -
TYPE OF IMPACT
UPSIDE/
DOWNSIDE
QUANTIFICATION - RANGE
<100 €MLN
100-300 €MLN >300 €MLN
Chronic physical
Market
increase or decrease in
Short term
Risk/opportunity:
electricity demand.
Global Power
Generation
Group
EBITDA/year
Chronic physical
Market
increase or decrease in
Short term
term, in order to assess the sensitivity of Group
Risk/opportunity:
renewables generation.
Global Power
Generation
Group
Potential
hydroelectric
output
Group
Potential wind
output
Group
Potential solar
output
EBITDA/year
EBITDA/year
EBITDA/year
Electricity demand is also affected by temperature,
whose fluctuations can have an impact on our
business. Although structural changes should not
emerge in the short/medium-term, in order to assess
the sensitivity of Group performance to potential
temperature variations, we have performed an analysis
of sensitivity to changes of +/-1% in electricity demand
for the Group as a whole.
Renewables generation is also affected by the
availability of resources, whose fluctuations can
have an impact on our business. Although structural
changes should not emerge in the short/medium-
performance to potential temperature variations,
we have performed an analysis of sensitivity to
changes of +/-10% in potential electricity output
by technology.
+1%
Upside
-1%
Downside
+10%
Upside
-10%
Downside
+10%
Upside
-10%
Downside
+10%
Upside
-10%
Downside
(1) Time horizon: short (2020-2022); medium (up to 2030); long (2030-2050).
Upside scenario current policies
Downside scenario current policies
Scenario analysis has shown that chronic structural changes in
ty demand (+/-1% per year), whose variations can potentially
the trends of physical variables will begin to occur after 2030.
impact the generation and retail businesses. It was stress
However, in order to obtain an indicative estimate of the po-
tested for all countries in which the Group operates. The out-
tential impacts, it is possible to test sensitivity of the Busi-
put potential of renewable plants was also stressed (+/-10%
ness Plan to the factors potentially influenced by the physical
over a single year). Variations in this variable can potentially
scenario, regardless of any direct relationship with climate
impact the generation business. It was stressed separately
variables. Of course, such stress testing has an extremely low
at the individual technology level around the globe. The data
probability of occurrence based on historical events and geo-
reported show the effect on a single year for a single genera-
graphical diversification. The variables examined are: electrici-
tion technology and include both the volume and price effects.
Risk management
67
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
Acute physical changes that represent
sources of risk and opportunity
With regard to acute physical phenomena (extreme events),
the incidence and frequency of extreme physical phenomena
can cause significant and unexpected physical damage to as-
sets and generate negative externalities associated with the
interruption of service.
To assess the scale of the risks of extreme climate events, the
in determining the processes and practices to be deployed in
mitigating such events in the future.
Generation
With regard to generation, over time the Group has imple-
mented targeted measures at specific sites and established
ad hoc management activities and processes.
Measures implemented for specific sites in recent years in-
scenario results will be examined in terms of the frequency
clude:
and intensity of the key phenomena, together with technical
information on generation assets, taking account of the differ-
ing levels of resilience, and identifying metrics to measure po-
tential losses and any externalities caused by the interruption
of business operations.
The intensification of the effects of climate change means it is
essential to adopt adaptive behaviors: each catastrophic event
represents a lesson learned for Enel, from which we draw
inspiration to strengthen design techniques and preventive
measures to ensure the resilience of the asset portfolio.
From this perspective, the method and the information ex-
tracted from the ex post analysis of events play a crucial role
> improving cooling water management systems for certain
plants in order to counter the problems caused by the de-
cline in water levels on rivers, such as the Po in Italy;
> installing fogging systems to improve the flow of inlet air
and offset the reduction in power output caused by the
increase in ambient temperature in CCGTs;
> installing drainage pumps, raising embankments, periodic
cleaning of canals and interventions to consolidate land ad-
jacent to plants to prevent landslides in order to mitigate
flood risks.
The Group adopts a series of best practices to manage the
impact of weather events on power generation, such as:
Group practices
for managing
weather events
in generation
operations
> Weather forecasting both to monitor renewable resource availability and detect extreme events,
with warning systems to ensure the protection of people and assets.
> Insurance policies to cover damage to assets and the negative externalities caused, for example, by
lost electricity production.
> Real-time remote monitoring of generation plants.
> Safe rooms in areas exposed to tornadoes and hurricanes, such as the wind farms in Oklahoma in
the United States.
In addition, in order to ensure rapid response to adverse
events, the Group has adopted specific emergency manage-
Infrastructure and Networks
The Enel Group’s Infrastructure and Networks Global Busi-
ment procedures with protocols for real-time communication
ness Line has adopted a more complex and innovative ap-
and management of all activities to restore operations rapidly
proach to respond to such extreme events denominated “4R”,
and standard checklists for damage assessment and the safe
in addition to the measures already envisaged to upgrade and
return to service for all plants as rapidly as possible.
improve the electricity distribution grid. This new approach
has been structured over the past few years in a body of doc-
umentation that governs the measures to be taken in prepara-
tion for a grid emergency once the damage has been caused.
More specifically, the 4R strategy comprises:
68
Consolidated Annual Report 2019
An initial “risk prevention” phase, which includes all actions to reduce the probability of losing grid
components due to an event and/or to minimize its effects. This is pursued both through measures to
enhance the robustness of grid infrastructure in extreme weather events and maintenance measures.
Measures to reinforce the grid have been implemented not only to improve service quality in general,
but also to reduce the risk of prolonged or widespread outages in the event of a malfunction, using
a probabilistic approach. This approach has mainly been used to reduce the risk of outages at critical
installations (primary substations) or for particular grid configurations (where no alternative power
supply routes are available).
In Italy, to prevent service interruptions due to the breakage of overhead power lines as a result of
snowfall, the risk of such interruptions has been assessed on the basis of the probability of losing
segments of the grid and then calculating the relative impact in terms of customers without power
and the loss in terms of power not delivered. To address these risks, investments include the targeted
replacement of uninsulated lines with insulated conductors, increasing the number of alternative routes
to restore power and the use of remote control systems to isolate the section of the grid affected by
the fault as quickly as possible.
Again in Italy, the measures to increase resilience are contained in the three-year investment plan of
e-distribuzione and are designed to limit the risk of service interruptions caused by the main critical
factors that may impact e-distribuzione’s medium-voltage grid. The measures for the 2017-2021 period
involve some 4 million customers and over 7,000 km of medium-voltage lines.
A subsequent “readiness” phase that includes all measures to improve the timeliness with which
potentially risky events are identified, ensuring coordination with the Civil Protection Department and
local officials, as well as to prepare intervention measures once a fault has occurred. Examples of
measures include systems for forecasting meteorological events and their impact on the grid, the
provisioning of adequate equipment to build temporary plant or emergency grid structures, the
preparation of operational plans and the organization of exercises. One of the most important measures
is certainly the definition of agreements for the mobilization of designated extraordinary resources
to respond to an emergency. These include both internal resources and the resources of contracting
companies operating in other areas of a country and/or in other countries.
4R - Risk
prevention
4R - Readiness
4R - Response
The third phase is the “response” phase, meaning the operational response capacity for a specific
extreme event, which is directly correlated with the ability to mobilize operational resources in the field
and with the availability of grid backup and redundancies.
4R - Recovery
The final phase is the “recovery” phase, which seeks to restore an acceptable and safe level of service
in the shortest possible time.
Response and recovery are complementary. The philosophy
of the most effective strategy to manage the repair of power
that guides interventions in these two phases is that excep-
lines and the restoration of service to customers.
tional resources must be used to deal with exceptional events,
In this regard, the Enel Group in Italy is a permanent guest
and that all the available resources prepared in the readiness
of the Operations Committee of the National Civil Protection
phase must therefore be mobilized. The assessment of the
Department and has signed protocols with both the National
damage caused to the grid is the first activity to be performed.
Civil Protection Department and Regional Civil Protection De-
Enel promptly activates a task force of specialized technicians
partments in order to facilitate communication in emergency
and deploys special equipment (helicopters and generators)
situations, joint training and any other initiative that makes
to restore service, and mobilizes personnel from other areas/
collaboration with the civil protection system more effective
countries. Great attention is paid in these phases to commu-
and rapid.
nication with all the players involved and the determination
Risk management
69
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Transition phenomena:
repercussions on our business,
risks and opportunities
With regard to the risks and opportunities associated with
transition variables, we use the different reference scenarios
in combination with the various elements that make up the
risk identification process (e.g. competitive context, long-term
vision of the industry, materiality analysis, etc.) to identify the
drivers of potential risks and opportunities. Priority is given to
the most material phenomena. The main risks and opportu-
nities identified within this framework are described below.
Policy & Regulation
Limits on
emissions and
carbon pricing
Incentives for the
energy transition
The enactment of laws and regulations that introduce more stringent emission limits by government
action (non-market driven) and market-based mechanisms, such as a carbon tax in non-ETS (Emissions
Trading System) sectors or an expansion of the ETS in other sectors.
> Opportunities: command & control regulations and market-based mechanisms strengthening CO2
price signals to foster investment in carbon-free technologies.
> Risks: lack of a coordinated approach among the various actors and policy-makers involved and
limited effectiveness of the policy instruments deployed, with an impact on the speed of the trend
towards electrification and decarbonization in the various sectors, compared with a decisive group
strategy focused on the energy transition.
Development incentives and opportunities with a view to the energy transition, consequently guiding
the energy system towards the use of low-emission energy resources as the mainstream approach
in the energy mixes of countries, greater electrification of energy consumption, energy efficiency,
flexibility of the electrical system and upgrading of infrastructure, with a positive impact on the return
on investment and new business opportunities.
> Opportunities: additional volumes and greater margins due to additional investment in the
electricity industry, in line with the electrification strategy, decarbonization and the upgrading of
enabling infrastructure.
> Risks: obstacles to achieving energy transition targets due to regulatory systems that do no
effectively support the energy transition (delays in permitting, no upgrading of the electricity grid,
etc.).
Resilience
regulation
To improve standards or introduce ad hoc mechanisms to incentivize investments in resilience in the
context of the evolution of climate change.
> Opportunities: benefits from investments that reduce service quality and continuity risks for the
community.
> Risks: in the case of especially severe extreme events with a greater-than-expected impact, there
is a risk that recovery could be slower than planned, with an associated reputational risk.).
Financial measures
for the energy
transition
Incentives for the energy transition through appropriate policy measures and financial instruments,
which should be capable of supporting an investment framework and a long-term, credible and stable
positioning of policy-makers. Introduction of rules and/or public and private financial instruments
(e.g. funds, mechanisms, taxonomies, benchmarks) aimed at integrating sustainability into financial
markets and public finance instruments.
> Opportunities: the creation of new markets and sustainable finance products consistent with
the investment framework, activating greater public resources for decarbonization and access to
financial resources in line with energy transition objectives and the related impact on costs and on
finance charges; introduction of subsidized support tools (funds and calls) for the transition.
> Risks: actions and instruments are not sufficient to provide incentives consistent with an overall
positioning tailored to the energy transition, uncertainty or slowdown in the introduction of new
instruments and rules due to the deterioration in the public finances or differences in application in
the geographic areas in which the Group operates.
70
Consolidated Annual Report 2019 Market
Market dynamics, such as those connected with the variability of commodity prices, the increase
in electricity consumption due to the energy transition and the penetration of renewables, have an
impact on business drivers, with effects on margins and on production and sales volumes.
Market dynamics
> Opportunities: positive effects associated with the growth in electricity demand and the greater
room for renewables and all sources of flexibility.
> Risks: less room in the market for residual thermal generation technologies in the short term.
However, as the penetration of renewables in the electricity mix increases, the system could
require greater flexibility, including regulated gas-fired generation.
Technology
Penetration of new
technologies
Gradual penetration of new technologies such as storage and demand response; digital lever to
transform operating models and “platform” business models.
> Opportunities: investments in developing technology solutions.
Products and Services
Electrification of
residential energy
consumption
Electric mobility
and electrification
of industrial energy
consumption
With the gradual electrification of end uses, the penetration of products with lower costs and a
smaller impact in terms of residential emissions will expand (for example, the use of heat pumps for
heating and cooling).
> Opportunities: increase in electricity consumption.
> Risks: additional competition in this market segment.
Use of more efficient and effective modes of transportation from the point of view of climate change,
with a special focus on the development of electric mobility and charging infrastructure; electrification
of large-scale industrial energy users.
> Opportunities: positive effects of the increase in electricity demand and greater margins connected
with the penetration of electric transportation.
The Group has already taken strategic actions to mitigate po-
As with climate variables, we can test the current Business
tential risks and exploit the opportunities offered by the energy
Plan (2020-2022) for its sensitivity to the factors potentially in-
transition. Thanks to our industrial and financial strategy incor-
porating ESG factors, an integrated approach shaped by sus-
tainability and innovation makes it possible to create long-term
shared-value.
A strategy focused on complete decarbonization and the ener-
fluenced by the transition scenario, with particular regard to the
price of CO2 (ETS). Examining the main transition variables, the
price of CO2 appears to be an especially reliable driver of reg-
ulatory measures that could accelerate the transition process.
gy transition makes the Group resilient to the risks associated
with the introduction of more ambitious policies for emission
reductions and maximizes opportunities for the development of
To assess the impact of possible changes in this driver, the ef-
fects of a potential change of +/-10% in the CO2 price for Italy
and Spain are determined. This price change would modify the
renewable generation, infrastructure and enabling technologies.
equilibrium price of both wholesale markets, with repercus-
Unlike chronic climate impacts, developments in the transition
sions on the margins of Global Power Generation for both ther-
scenario could have impacts in the short and medium term (by
mal and renewable plants.
2030) as well.
Risk management
71
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements To quantify the risks and opportunities engendered by the energy transition in the medium term, two scenarios have been
considered for Italy and Spain:
“Current policies” scenario
Based on the current energy transition policies of Italy and Spain (PNIEC), which are
presumably consistent with an intermediate climate scenario between RCP 8.5 and RCP
2.6. The “current policies” scenario considered for the two countries, while among the
less ambitious scenarios of RCP 2.6, represents a plausible outlook in that it derives from
policies that have already been approved and which will probably not be disregarded. At a
global level, however, if the world’s leading countries do not adopt effective decarbonization
policies, instead pursuing policies that produce no change or actually worsen conditions,
the “current policies” approach could still lead to a climate scenario in line with SPC 8.5.
“Accelerated policies”
scenario
Based on potential rapid transition policies aimed at achieving CO2 reduction targets that
are presumably consistent with the RCP 2.6 scenario. This scenario also incorporates an
increase in energy efficiency and a drive to electrify end-user energy consumption.
SCENARIO
PHENOMENA
RISK &
OPPORTUNITY
CATEGORY
DESCRIPTION
TIME
HORIZON (1)
IMPACT
GBL AFFECTED
SCOPE
QUANTIFICATION -
TYPE OF IMPACT
UPSIDE/
DOWNSIDE
QUANTIFICATION - RANGE
<100 €MLN
100-300 €MLN >300 €MLN
ACCELERATED
IMPACT WITH
TRANSITION
Transition
Policy &
Regulation
Risk: impact on margin due
to measures affecting CO2
price.
Short/medium
term
Considering the potential impact of regulatory me-
asures to incentivize energy transition, the Group
assesses the exposure to changes of +/- 10% in the
price of CO2 using sensitivity analysis.
Global Power
Generation
Italy and Iberia
EBITDA/year
+10%
Upside
-10%
Downside
Transition
Market
Transition
Products &
Services
Opportunity: incease in
margins due to impact of
transition on electrification of
energy consumption.
Risk: increase in competition
and possible decrease in market
share.
Opportunity: increase
in margins and greater
scope for investment due
to impact of transition in
terms of penetration of new
technologies and electric
transportation.
Medium term
Considering two alternative transition scenarios, the
Group assesses the impact of trends in efficiency,
the adoption of electric devices and the penetration
of EVs to estimate its potential effect on electricity
demand.
Medium term
Considering two alternative transition scenarios,
the Group has assessed the impact of trends in
the electrification of transportation and residential
consumption to assess the potential effects.
(1) Time horizon: short (2020-2022); medium (up to 2030); long (2030-2050).
Retail
Enel X
Italy and Iberia
EBITDA 2030 vs
2022
Upside
Italy and Iberia
Gross margin
Σ 2022-2030
Upside
72
Consolidated Annual Report 2019
Considering these transition scenarios and models of the en-
ables or accelerating the phase-out of obsolete technologies).
ergy system, we determined their impact on the variables that
By 2030, the dynamics of the energy transition may produce
most greatly affect our business, such as electricity demand,
significant opportunities in the retail electricity market. The pro-
the system energy mix and the increase in electricity consump-
gressive electrification of final consumption, especially in trans-
tion due to the electrification of final consumption. The transition
portation and the residential sector, will lead to a significant in-
effects over the medium term can produce new opportunities,
crease in electricity consumption.
thanks to the growth of renewables, and potential risks linked
Considering the transition scenarios developed by the Group for
to the loss of profitability for thermal plants. Based on assump-
Italy and Spain, the increase in electricity consumption in the do-
tions about future regulatory developments and market trends,
mestic segment could produce an increase of more than €300
we can forecast developments in output in the Group’s elec-
million in EBITDA by 2030 compared with 2022. Considering a
tricity markets (for now, Italy and Spain only) and unit margins.
more optimistic transition scenario, i.e. one with a higher elec-
These considerations offer a basis for determining the Group’s
trification rate for transportation and heating/cooling, the effects
possible strategic positioning in terms of resource allocation (for
could be even greater, leaving unchanged the assumptions for
example, maintaining or increasing our market share in renew-
margins and market share set out in the Plan.
SCENARIO
PHENOMENA
RISK &
CATEGORY
OPPORTUNITY
DESCRIPTION
TIME
HORIZON (1)
IMPACT
GBL AFFECTED
SCOPE
QUANTIFICATION -
TYPE OF IMPACT
UPSIDE/
DOWNSIDE
<100 €MLN
100-300 €MLN >300 €MLN
QUANTIFICATION - RANGE
IMPACT WITH
ACCELERATED
TRANSITION
Transition
Policy &
Regulation
Risk: impact on margin due
to measures affecting CO2
price.
Considering the potential impact of regulatory me-
Short/medium
asures to incentivize energy transition, the Group
term
assesses the exposure to changes of +/- 10% in the
price of CO2 using sensitivity analysis.
Global Power
Generation
Italy and Iberia
EBITDA/year
+10%
Upside
-10%
Downside
Transition
Market
energy consumption.
Medium term
the adoption of electric devices and the penetration
Opportunity: incease in
margins due to impact of
transition on electrification of
Risk: increase in competition
and possible decrease in market
share.
Opportunity: increase
in margins and greater
scope for investment due
terms of penetration of new
technologies and electric
transportation.
Considering two alternative transition scenarios, the
Group assesses the impact of trends in efficiency,
of EVs to estimate its potential effect on electricity
demand.
Considering two alternative transition scenarios,
the Group has assessed the impact of trends in
the electrification of transportation and residential
consumption to assess the potential effects.
Transition
to impact of transition in
Medium term
Products &
Services
Retail
Enel X
Italy and Iberia
EBITDA 2030 vs
2022
Upside
Italy and Iberia
Gross margin
Σ 2022-2030
Upside
Upside scenario current policies
Downside scenario current policies
Risk management
73
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
74
Relazione Finanziaria Annuale 2019 4.
PERFORMANCE
& METRICS
REPORT
ON OPERATIONS
75
Xxxxxxxxx Xxxxxxxxxxx Definition of performance indicators
In order to present the results of the Group and analyze their
as well as significant impairment losses on assets following
financial structure, Enel has prepared separate reclassified
impairment testing or classification under “Assets held for
schedules that differ from the schedules envisaged under
sale”.
the IFRS-EU adopted by the Group and presented in the con-
solidated financial statements. These reclassified schedules
Group ordinary net income: it is defined as “Group net in-
contain different performance indicators from those obtained
come” generated by Enel’s core business and is equal to
directly from the consolidated financial statements, which
“Group net income” excluding the impact on it (and there-
management believes are useful in monitoring the perfor-
fore net of any tax effects and non-controlling interests) of the
mance of the Group and representative of the financial perfor-
items discussed under “Ordinary operating income”.
mance of our business.
With regard to those indicators, on December 3, 2015, CON-
Low carbon ordinary EBITDA: it is the ordinary gross operat-
SOB issued Communication no. 92543/15, which gives force
ing margin of the set of products, services and technologies
to the Guidelines issued on October 5, 2015, by the European
included in the following Business Lines: Enel Green Power,
Securities and Markets Authority (ESMA) concerning the pre-
Infrastructure and Networks, Enel X and End-user Markets
sentation of alternative performance measures in regulated
(excluding gas).
information disclosed or prospectuses published as from July
3, 2016. These Guidelines, which update the previous CESR
Gross global value added from continuing operations: this
Recommendation (CESR/05-178b), are intended to promote
is defined as value created for stakeholders and is equal to
the usefulness and transparency of alternative performance
“Revenue”, including “Net income/(expense) from commodity
indicators included in regulated information or prospectuses
management” net of external costs defined as the algebraic
within the scope of application of Directive 2003/71/EC in or-
sum of “cost of fuels”, “cost of electricity purchases”, “costs
der to improve their comparability, reliability and comprehen-
of materials”, “capitalized costs of internal projects”, “other
sibility.
costs” and “costs for services, rentals and leases”, with the
Accordingly, in line with the regulations cited above, the crite-
latter net of “costs for fixed water diversion fees” and “costs
ria used to construct these indicators are the following.
for public land usage fees”.
Gross operating margin: an operating performance indicator,
Net non-current assets: calculated as the difference between
calculated as “Operating income” plus “Depreciation, amorti-
“Non-current assets” and “Non-current liabilities” with the
zation and impairment losses”.
exception of:
> “Deferred tax assets”;
Ordinary gross operating margin: it is calculated by adjust-
> “Securities” and “Other financial receivables” included in
ing the “Gross operating margin” for all items generated by
“Other non-current financial assets”;
non-recurring transactions, such as acquisitions or disposals
> “Long-term borrowings”;
of businesses (for example, capital gains and losses), with the
> “Employee benefits”;
exception of those transactions carried out in the renewable
> “Provisions for risks and charges (non-current portion)”;
segment, related to the new “Build, Sell and Operate” busi-
> “Deferred tax liabilities”.
ness model launched in the 4th Quarter of 2016, where the in-
come from the disposal (or repurchase) of projects represents
Net current assets: calculated as the difference between
an ordinary activity for the Group.
“Current assets” and “Current liabilities” with the exception
Ordinary operating income: it is calculated by adjusting the
> “Current portion of long-term financial receivables”, “Fac-
“Operating income” for the effects of the non-recurring trans-
toring receivables”, “Securities”, “Cash collateral” and
actions referred to with regard to the gross operating margin,
“Other financial receivables” included in “Other current
of:
76
Consolidated Annual Report 2019 financial assets”;
> “Cash and cash equivalents”;
> “Long-term borrowings” and “Short-term borrowings and
the current portion of long-term borrowings”, taking ac-
> “Short-term borrowings” and the “Current portion of long-
count of “Short-term financial payables” included in “Other
term borrowings”;
current liabilities”;
> “Provisions for risks and charges (current portion)”;
> net of “Cash and cash equivalents”;
> “Other financial payables” included in “Other current lia-
> net of the “Current portion of long-term financial receiv-
bilities”.
ables”, “Factoring receivables”, “Cash collateral” and “Oth-
er financial receivables” included in “Other current financial
Net assets held for sale: calculated as the algebraic sum of
assets”;
“Assets held for sale” and “Liabilities held for sale”.
> net of “Securities” and “Other financial receivables” in-
cluded in “Other non-current financial assets”.
Net capital employed: calculated as the sum of “Net non-cur-
More generally, the net financial debt of the Enel Group is
rent assets” and “Net current assets”, “Provisions for risks
calculated in accordance with paragraph 127 of Recommen-
and charges”, “Deferred tax liabilities” and “Deferred tax as-
dation CESR/05-054b implementing Regulation (EC) no.
sets”, as well as “Net assets held for sale”.
809/2004 and in line with the CONSOB instructions of July
28, 2006, net of financial receivables and long-term securities.
Net financial debt: a financial structure indicator, determined by:
Main changes in the scope of consolidation
In the two periods under review, the scope of consolidation
information, please see note 6 on the consolidated financial
changed as a result of a number of transactions. For more
statements.
Definition of performance indicators
77
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 78
Consolidated Annual Report 2019
Consolidated Annual Report 2019 Performance of the Group
Operations
229.1 TWh
Net electricity generation
of which
99.4 TWh renewables
50%
Net efficient installed
renewable capacity
for a total of 42.1 GW
2.2 mln km
Electricity distribution
and transmission grid
44.7 mln
End users with
active smart meters of which
13.1 mln of second generation
69.9 mln
Retail customers of which
22.8 mln free market
79,565
Charging points
+62.5% compared with 2018
The following presents the operating, environmental and financial performance of the Group
SDG
7
7
7
7
9
9
9
11
11
11
Net electricity generation (TWh)
of which:
- renewables (TWh)
Total net efficient capacity (GW)
Net efficient installed renewable capacity (GW)
Net efficient installed renewable capacity (%)
Net efficient additional installed renewable capacity (GW)
Electricity transported on Enel’s distribution grid (TWh) (1)
End uses with active smart meters (no.)
Electricity distribution and transmission grid (km)
End users (no.)
Electricity sold by Enel (TWh)
Gas sold to end users (billions of m3)
Retail customers (no.)
- of which free market
Demand response capacity (MW)
Charging points (no.)
Storage (MW)
(1) The figure for 2018 reflects a more accurate measurement of quantities transported.
Performance of the Group
2019
229.1
99.4
84.3
42.1
50%
3.58
504.0
44,668,538
2,230,029
73,258,840
301.7
10.5
69,914,992
22,780,590
6,297
79,565
110
2018
250.3
98.9
85.6
39.2
46%
2.68
484.4
43,770,085
2,226,097
72,945,664
295.4
11.2
71,117,743
21,478.721
6,215
48,967
70
Change
(21.2)
0.5
(1.3)
2.9
4%
0.90
19.6
898,453
3,932
313,176
6,3
(0.7)
(1,202,751)
1,301,869
82
30,598
40
79
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Net electricity generation (%)
Net electricity generation in 2019 totaled 229.1 TWh, a decrease on 2018 that reflected an 18.7% decline in thermal
generation compared with the previous year, mainly due to a reduction in coal-fired generation (-41.6% compared with
2018). Contributing to this development, which was connected with the decarbonization of the generation mix cited
above, were operations in Italy and Spain, as well as the sale of the Reftinskaya power plant in Russia.
2019
Solar
1.7%
Nuclear plants
11.5%
Total 229.1 TWh
Coal-fired plants
16.4%
Hydroelectric
27.3%
Wind
11.7%
Geothermal
and other 2.7%
Combined-cycle plants
19.6%
Fuel-oil and
turbo-gas plants 9.1%
Total renewable sources 43.4%
Total traditional sources 56.6%
2018
Total 250.3 TWh
Solar
2.0%
Nuclear plants
9.6%
Coal-fired plants
25.7%
Hydroelectric
26.3%
Wind
8.8%
Geothermal
and other 2.4%
Combined-cycle
plants 15.3%
Fuel-oil and
turbo-gas plants 9.9%
Total renewable sources 39.5%
Total traditional sources 60.5%
Total net efficient capacity (%)
At the end of December 2019, the Group’s total net efficient installed capacity was 84.3 GW, down 1.3 GW from 2018,
mainly due to the sale of the Reftinskaya coal-fired power plant in Russia. This reduction was partially offset by the entry
into operation of new renewable plants, mainly wind and solar in Spain, Mexico and the United States.
2019
Solar
3.7%
Nuclear plants
3.9%
Total 84.3 GW
Coal-fired plants
13.8%
Hydroelectric
33.0%
Wind
12.3%
Geothermal
and other 1.0%
Combined-cycle
plants 17.8%
Fuel-oil and
turbo-gas plants 14.5%
Total renewable sources 50.0%
Total traditional sources 50.0%
2018
Solar
2.7%
Nuclear plants
3.9%
Total 85.6 GW
Coal-fired plants
18.5%
Hydroelectric
32.5%
Wind
9.6%
Geothermal
and other 1.0%
Combined-cycle
plants 17.5%
Fuel-oil and
turbo-gas plants 14.3%
Total renewable sources 45.8%
Total traditional sources 54.2%
80
Consolidated Annual Report 2019 Main climate change and environmental
sustainability indicators
296 g/kWheq
Specific emissions of CO2
from total generation
-19.8% compared to 2018
54.85%
Zero-emission generation
(% of total)
€16,211 mln
EBITDA for low-carbon products,
services and technologies
+10.7% compared to 2018
€9,131 mln
Capex for low-carbon products,
services and technologies
Direct greenhouse gas emissions - Scope 1 (million/teq) (1)
Indirect greenhouse gas emissions - Scope 2 (million/teq) purchase of
electricity from the grid (location based) (2)
Indirect greenhouse gas emissions - Scope 2 (million/teq) purchase of
electricity from the grid (market based) (2)
Indirect greenhouse gas emissions - Scope 2 (million/teq) distribution grid
losses (location based) (1)
Indirect greenhouse gas emissions - Scope 3 (million/teq) (1)
of which emissions connected with gas sales (million/teq)
Specific emissions of CO2 from total generation (g/kWheq) (3)
Specific emissions of SO2 (g/kWheq) (3)
Specific emissions of NOx (g/kWheq) (3)
Specific emissions of particulates (g/kWheq) (3)
Total direct fuel consumption (Mtoe)
Reference price of CO2 (€)
Average efficiency of thermal plants (%) (4)
Zero-emission generation (% of total)
EBITDA for low-carbon products, services and technologies (millions of €)
Capex for low-carbon products, services and technologies (millions of €)
Ratio of capex for low-carbon products, services and technologies to total (%)
Water withdrawal in water-stressed areas (%)
Specific water requirement for total generation (l/kWheq)
2019
70.0
1.55
2.30
3.82
56.92
23.9
296
0.59
0.60
0.12
30.1
24.8
42.0
54.85
16,211
9,131
92%
14.1
0.33
2018
95.2
1.40
2.11
3.68
59.56
25.4
369
0.75
0.72
0.17
37.0
15.9
40.1
49.14
14,645
7,773
91%
11.6
0.38
Change
(25.2)
-26.5%
0.2
0.2
0.1
(2.64)
(1.5)
(73.0)
(0.2)
(0.1)
(0.1)
(6.9)
8.9
1.9
5.71
1,566.0
1,358.0
-
2.5
(0.1)
10.7%
9.0%
3.8%
-4.4%
-5.9%
-19.8%
-21.3%
-16.7%
-29.4%
-18.6%
56.0%
4.7%
11.6%
10.7%
17.5%
1.1%
21.6%
-13.2%
(1) The Scope values for 2018 have been modified by adding the new calculation categories introduced in 2019.
(2) Scope 2 emissions for electricity purchased from the grid have been recalculated to take account of an expansion of the calculation basis.
(3) Specific emissions are calculated considering total emissions from thermal generation as a ratio of total renewable, nuclear and thermal generation (including
the contribution of heat).
(4) The calculation does not consider Italian O&G plants being decommissioned or of marginal impact. In addition, the figures do not take account of consumption
and generation for cogeneration relating to Russian thermal generation plants. Average efficiency is calculated on the basis of the plant fleet and is weighted
by generation.
Performance of the Group
81
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The Group’s ambition for leadership in the fight against cli-
> the mapping of generation sites in areas at risk of water
mate change was further strengthened in 2019: the target for
scarcity, i.e. where the average availability of per capita wa-
the reduction of direct emissions from generation by 2020,
which was set in 2015 at 350 g/kWheq of CO2 with a 25% re-
duction compared with 2007, was achieved one year early. In
ter resources is below the benchmark level set by the FAO
(the mapping is performed using the Global Water Tool of
the World Business Council for Sustainable Development);
fact, 2019 closed with a reduction of 20% compared with the
base year, to 296 g/kWheq of CO2. In addition, in 2019 direct
emissions of CO2 equivalent (Scope 1) amounted to around
70 million tons equivalent, a decrease of 27% on 2018. The
> the identification of “critical” generation sites, i.e. those in
water scarcity areas drawing on fresh water;
> more efficient management of water resources in order to
maximize the use of waste water and sea water.
reduction is attributable to a decline in thermal generation
About 8% of the Enel Group’s total electricity output uses
and the concomitant increase in generation from renewables,
fresh water in water-stressed areas. In 2019 the total water
which raised the proportion of electricity generated with ze-
requirement was 77.3 million cubic meters, some 20% less
ro-emissions sourced to 54.9% of total consolidated output in
than in 2018, reflecting a decrease in thermal generation
2019 (a significant increase on the 49.1% registered in 2018).
compared with the previous year. The specific requirement
for 2019 was 0.33 l/kWheq, 13% less than in 2018.
Specific atmospheric emissions of SO2 and NOX also declined
by about 21% and 17% respectively compared with 2018, as
confirmed by emissions of particulates, which declined fur-
Preserving biodiversity
ther due to a reduction in generation from coal during 2019.
Preserving biodiversity is one of the strategic objectives of
Responsible water resource
management
Water is an essential part of electricity generation, and Enel
therefore believes that the availability of this resource is a
critical part of future energy scenarios. The Group has always
managed the water we use efficiently through ongoing moni-
toring of all power plants located in areas threatened by water
scarcity. Enel employs the following levels of analysis:
Enel’s environmental policy. The Group promotes specific
projects in the various areas in which we operate in order to
help protect local species, their natural habitats, and the lo-
cal ecosystems in general. These projects cover a vast range
of areas, including: inventory and monitoring; programs to
protect specific species; methodological research and other
studies; repopulation and reforestation; and the construction
of infrastructure supports to promote the presence and activ-
ities of various species (e.g. artificial nests along power dis-
tribution lines for birds or fish ladders at hydroelectric plants).
82
Consolidated Annual Report 2019 Group performance
€17,704 mln
Gross operating margin
+8.3% compared to 2018
€6,878 mln
Operating income
€9,900 million in 2018
€2,174 mln
Group net income
-54.6% compared to 2018
€17,905 mln
Ordinary gross
operating margin
+10.8% compared to 2018
€11,096 mln
Ordinary operating income
of which 30% from
Enel Green Power
€4,767 mln
Group ordinary net income
+17.4% compared to 2018
Millions of euro
Revenue
Costs
Net income/(expense) from commodity risk management
Gross operating margin
Depreciation, amortization and impairment losses
Operating income
Financial income
Financial expense
2019
80,327
61,890
(733)
17,704
10,826
6,878
3,953
6,397
2018
75,575
59,756
532
16,351
6,451
9,900
4,361
6,409
Total net financial income/(expense)
(2,444)
(2,048)
Share of income/(losses) from equity investments accounted
for using the equity method
Income before taxes
Income taxes
Net income from continuing operations
Net income from discontinued operations
Net income (Group and non-controlling interests)
Net income attributable to shareholders of Parent Company
Net income attributable to non-controlling interests
(122)
4,312
836
3,476
-
3,476
2,174
1,302
349
8,201
1,851
6,350
-
6,350
4,789
1,561
Change
4,752
2,134
(1,265)
1,353
4,375
(3,022)
(408)
(12)
(396)
(471)
(3,889)
(1,015)
(2,874)
-
(2,874)
(2,615)
(259)
6.3%
3.6%
-
8.3%
67.8%
-30.5%
-9.4%
-0.2%
-19.3%
-
-47.4%
-54.8%
-45.3%
-
-45.3%
-54.6%
-16.6%
Performance of the Group
83
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Revenue
Millions of euro
Sale of electricity
Transport of electricity
Fees from network operators
Transfers from institutional market operators
Sale of gas
Transport of gas
Sale of fuels
Fees for connection to electricity and gas networks
Revenue from construction contracts
Sale of commodities under contracts with physical delivery (IFRS 9)
Other revenue
Total
2019
40,045
10,470
866
1,625
3,294
617
914
785
749
16,294
4,668
80,327
2018
39,278
10,101
1,012
1,711
4,401
576
919
714
735
11,833
4,295
75,575
Change
767
369
(146)
(86)
(1,107)
41
(5)
71
14
4,461
373
4,752
2.0%
3.7%
-14.4%
-5.0%
-25.2%
7.1%
-0.5%
9.9%
1.9%
37.7%
8.7%
6.3%
The increase in revenue is largely attributable to the item “Sale
ment between Edesur and local authorities settling recip-
of commodities under contracts with physical delivery” as a
rocal disputes originating in the period from 2006 to 2016
result of reclassifications with no impact on margins. The re-
(€233 million);
classifications were connected with the application of the IFRIC
> the reimbursement envisaged for the exercise of the right
Agenda Decision of March 2019 to non-financial transactions
of withdrawal by a major industrial customer concerning the
with physical delivery measured at fair value in accordance with
supply of electricity by Enel Generación Chile (€160 million),
IFRS 9.
of which €80 million regarding thermal generation and the
The additional increase in revenue is attributable to the posi-
remaining €80 million concerning renewables generation;
tive performance of Infrastructure and Networks, in particular
> the adjustment of the price for the acquisition of eMotorW-
in Latin America, mainly due to the contribution of Enel Dis-
erks in 2017 following application of a number of contractu-
tribuição São Paulo in Brazil and the settlement of outstanding
al clauses (€98 million);
regulatory items in Argentina, and to Thermal Generation and
> the fee of €50 million from the agreement reached by e-dis-
Trading in Italy, reflecting in particular an increase in trading
tribuzione with F2i and 2i Rete Gas for the early all-inclu-
activities. These effects were only partially offset by lower
sive settlement of the second indemnity connected with
revenue from on End-user Markets in Spain and Italy and by
the disposal in 2009 of the interest held by e-distribuzione
adverse exchange rate developments.
in Enel Rete Gas.
Other revenue recognized in 2019 included:
In 2018, that item had mainly comprised:
> the gain on the sale of Mercure Srl, a special purpose ve-
> the gain and the re-measurement at fair value totaling €190
hicle to which Enel Produzione had previously transferred
million connected with the sale of eight companies involved
the Valle del Mercure biomass plant (€108 million);
in Project Kino in Mexico at the end of September 2018;
> the negative goodwill (€181 million) deriving from the
> the indemnity of €128 million received in connection with
definitive allocation of the purchase price of (i) a number
the agreement of e-distribuzione for the sale of Enel Rete
of companies sold by Enel Green Power North Ameri-
Gas in 2009;
ca Renewable Energy Partners LLC (€106 million) and (ii)
> the gain of €65 million on the sale of EF Solare Italia;
Tradewind, which went from being an associate to a whol-
> the gain of €18 million on the sale of a number of renew-
ly-owned subsidiary (negative goodwill of €75 million);
ables companies in Uruguay.
> the gain of €42 million on the sale of Gratiot and Outlaw,
two renewables projects developed by Tradewind;
> an increase in revenue in Argentina following the agree-
84
Consolidated Annual Report 2019 Costs
Millions of euro
Electricity purchases
Consumption of fuel for electricity generation
Fuel for trading and gas for sale to end users
Materials
Personnel
Services, leases and rentals (1)
Other operating expenses
Capitalized costs
Total
2019
20,449
4,228
9,284
2,110
4,634
16,264
7,276
(2,355)
61,890
2018
19,802
4,920
12,783
1,911
4,581
16,254
1,769
(2,264)
59,756
Change
647
(692)
(3,499)
199
53
10
5,507
(91)
2,134
3.3%
-14.1%
-27.4%
10.4%
1.2%
0.1%
-
-4.0%
3.6%
(1) Of which costs for fixed water diversion fees of €171 million in 2019 (€167 million in 2018) and costs for public land usage fees of €26 million in 2019 (€24 million
in 2018).
The increase in costs is mainly attributable to the application
income statement items with no impact on margins.
of the IFRIC Agenda Decision of March 2019 to non-financial
Please see the notes to the consolidated financial statements
transactions with physical delivery measured at fair value in
for more details on costs for the year.
accordance with IFRS 9, which involved reclassifications of
Gross operating margin
The following table reports developments in the gross operating margin by business area:
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other, eliminations and adjustments
Total
2019
1,395
4,604
8,278
3,287
158
126
(144)
17,704
2018
1,117
4,608
7,539
3,079
124
85
(201)
Change
278
(4)
739
208
34
41
57
16,351
1,353
24.9%
-0.1%
9.8%
6.8%
27.4%
48.2%
28.4%
8.3%
The rise in the gross operating margin despite adverse ex-
dition, in 2019 e-distribuzione recognized additional indem-
change rate developments (especially in Latin America) mainly
nities of €50 million connected with the disposal to F2i of
reflects:
Enel Rete Gas; in 2018 those indemnities had amounted to
> Infrastructure and Networks operations in Latin America
€128 million;
(€496 million), mainly due to the change in the scope of
> Thermal Generation and Trading in Spain (€165 million) and
consolidation with the acquisition of Enel Distribuição São
Latin America (€173 million), due respectively to (i) the sus-
Paulo, income from the agreement between Edesur and
pension of taxes on thermal and nuclear generation as well
the Argentine government settling reciprocal disputes from
as an increase in the margin of nuclear plants, which made
the period from 2006 to 2016 and in Italy (€227 million),
up the shortfall caused by the significant decrease in hydro
mainly due to a decrease in compliance costs connected
output due to poor water conditions in 2019 and (ii) the im-
with the purchase of energy efficiency certificates. In ad-
provement in margins posted by the Fortaleza plant in Bra-
Performance of the Group
85
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements zil, mainly reflecting a decline in provisioning costs and the
which more than offset the decline in quantities sold;
effect of the renegotiation of a supply contract between
> Enel X, thanks to the adjustment of the price for the acqui-
Enel Generación Chile and its customer Anglo American
sition of eMotorWerks in 2017, as noted for revenue (€98
following payment of an indemnity of €80 million. In ad-
million).
dition, writedowns totaling €308 million were recognized
The Enel Green Power Business Line posted a gross operat-
on inventories of spare parts and fuels held by coal-fired
ing margin in line with the previous year, as the income re-
plants in Italy and Spain for which impairment losses were
corded in North America for the negative goodwill following
recognized. This was partially offset in Italy by the gain on
the purchase of a number of companies of Enel Green Power
the disposal of Mercure Srl by Enel Produzione, which net
North America Renewable Energy Partners (EGPNA REP) and
of transaction costs amounted to €94 million;
Tradewind, the capital gains from the sales of Gratiot and Out-
> End-user Markets in Latin America (€85 million), mainly due
law and the higher average prices applied to electricity sales
to the impact of the acquisition of Enel Distribuição São Pau-
in Italy were essentially offset by the gains recorded in 2018
lo, and in Italy (€81 million), due to greater operating efficien-
on the sale of a number of Mexican companies (Project Kino)
cy linked especially to lower electricity provisioning costs,
and the sale of EF Solare Italia.
Ordinary gross operating margin
Millions of euro
2019
Thermal
Generation
and Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
Gross operating margin
1,395
4,604
8,278
3,287
158
126
(144)
17,704
Indemnity from disposal of interest in
Enel Rete Gas
Adjustment to fair value of purchase
price of a number of Greek companies
Writedown of fuel and spare parts
inventories of a number of coal-fired
plants in Italy and in Spain (1)
Writedown of Reftinskaya coal-fired
plant in Russia
Disposal of interest in Mercure Srl
-
-
308
7
(94)
-
30
-
-
-
(50)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(50)
30
308
7
(94)
Ordinary gross operating margin
1,616
4,634
8,228
3,287
158
126
(144)
17,905
(1) The writedown of fuel and materials/spare parts inventories is not considered ordinary because it was connected with the impairment recognized for a number
of coal-fired plants in Italy and Spain.
86
Consolidated Annual Report 2019 Millions of euro
2018
Thermal
Generation
and Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
Gross operating margin
1,117
4,608
7,539
3,079
124
85
(201)
16,351
Indemnity from disposal of interest in
Enel Rete Gas
Gain on sale of EF Solare Italia
-
-
-
(65)
(128)
-
-
-
-
-
-
-
-
-
(128)
(65)
Ordinary gross operating margin
1,117
4,543
7,411
3,079
124
85
(201)
16,158
Operating income
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other, eliminations and adjustments
Total
2019
(3,494)
3,276
5,277
2,163
(98)
(75)
(171)
6,878
2018
(118)
3,505
4,787
1,958
19
(38)
(213)
9,900
Change
(3,376)
(229)
490
205
(117)
(37)
42
(3,022)
-
-6.5%
10.2%
10.5%
-
-97.4%
19.7%
-30.5%
The decrease in operating income reflected an increase in
depreciation, amortization and impairment losses of €4,375
million, despite the improvement in the gross operating mar-
ty (the capacity market) narrowed the future scope for using
plants with higher levels of CO2 emissions, providing for the
exclusion of coal-fired plants from the electricity market. For
gin. The increase in depreciation, amortization and impair-
these reasons, the carrying amount of a number of coal-fired
ment losses reflected the writedowns in 2019 of a number of
plants in Italy and Spain, including dismantling charges, was
coal-fired plants in Italy, Spain, Chile and Russia, which led to
written down by a total of €3,527 million.
the recognition of impairment losses totaling €4,010 million.
More specifically, in the 1st Half of 2019 two plants in Chile
The change in operating income also includes the depreci-
were written down by €356 million, reflecting in part the ef-
ation charges on rights of use over leased assets, which as
fect of the agreement with the Chilean government on their
from January 1, 2019 are recognized as leased property, plant
early closure, while in Russia writedowns reflected the sale
and equipment and depreciated over the term of the associ-
of the Reftinskaya coal-fired plant, which at June 30, 2019 had
ated leases in application of IFRS 16 (€203 million), and the
been classified as held for sale and its value adjusted (€127
writedown of the receivable for the Funac by the Brazilian dis-
million) to take account of the sale price. In the 3rd Quar-
tribution company Enel Distribuição Goiás in the amount of
ter of 2019, the adverse developments in conditions in Spain
€96 million.
associated with the deterioration in commodity prices and
the operation of the CO2 emission market, compromised the
competitiveness of coal-fired plants. In Italy, in addition to the
These factors were partly offset by the writeback of €265 mil-
lion recognized in respect of gas-fired plants in Italy following
deterioration in market conditions, the implementation of the
impairment testing.
new system for remunerating generation capacity availabili-
Performance of the Group
87
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
Ordinary operating income
Millions of euro
2019
Operating income
(3,494)
Thermal Generation
and Trading
Enel
Green
Power
3,276
Infrastructure
and Networks
End-user
Markets
Enel X Services
Other,
eliminations
and
adjustments
5,277
2,163
(98)
(75)
(171)
Indemnity from disposal of
interest in Enel Rete Gas
Disposal of interest in Mercure
Srl
Writedown of fuel and spare
parts inventories of a number
of coal-fired plants in Italy and
in Spain (1)
Writedown of a number of coal-
fired plants in Italy
Writedown of a number of coal-
fired plants in Spain
Revaluation of a number of gas-
fired plants in Italy
Writedown of a number of coal-
fired plants in Chile
Writedown of Reftinskaya coal-
fired plant in Russia
Writedown of a number of
renewables projects in Italy and
North America
Writedown of Funac receivable
of Enel Distribuição Goiás
Writedown of certain intangible
assets of Enel X North America
Writedown of certain assets of
Enel Italia
Adjustment of purchase
price of a number of Greek
companies
-
(94)
308
1,936
1,591
(265)
356
134
-
-
-
-
-
-
-
-
-
-
-
-
-
70
-
-
-
30
(50)
-
-
-
-
-
-
-
-
96
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
77
-
-
-
-
-
-
-
-
-
-
-
-
-
29
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
6,878
(50)
(94)
308
1,936
1,591
(265)
356
134
70
96
77
29
30
Ordinary operating income
472
3,376
5,323
2,163
(21)
(46)
(171)
11,096
(1) The writedown of fuel and materials/spare parts inventories is not considered ordinary because it was connected with the impairment recognized for a number
of coal-fired plants in Italy and Spain.
88
Consolidated Annual Report 2019
Millions of euro
2018
Thermal
Generation and
Trading
(118)
Enel
Green
Power
3,505
Infrastructure
and Networks
End-user
Markets
Enel X Services
Other,
eliminations
and
adjustments
4,787
1,958
19
(38)
(213)
Operating income
Indemnity from disposal of Enel
Rete Gas
Gain on sale of EF Solare Italia
Writedown of Alcúdia plant
(Spain)
Reversal of impairment on EGP
Hellas CGU and impairment of
wind projects (Cyclades islands)
Writedown of Nuove Energie
CGU
Net writedown of biomass and
solar plants in Italy
Ordinary operating income
-
-
82
-
27
-
(9)
-
(65)
-
(117)
-
94
(128)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,417
4,659
1,958
19
(38)
(213)
9,793
Total
9,900
(128)
(65)
82
(117)
27
94
Group net income
> the recognition of prepaid taxes in 2018 on prior-year loss-
es by Enel Distribuição Goiás (€274 million) and Enel Green
Group net income for 2019 amounted to €2,174 million, com-
Power SpA due to the merger with 3Sun (€85 million);
pared with €4,789 million the previous year. The decrease in
> non-controlling interests, which benefitted from an im-
operating income discussed above was accompanied by:
provement in net income as a ratio of pre-tax income in
> the effects of the repurchase in March 2019 of control of
the two years under review, reflecting in particular the im-
13 companies from EGPNA REP, which led to a change in
pairment recognized on the wholly-owned subsidiary Enel
the scope of consolidation and the recognition of a capital
Produzione.
loss by EGPNA REP;
These effects were partially offset by the reversal of deferred
> the recognition in 2018 of (i) the reversal of impairment of
tax liabilities of Enel Distribuição São Paulo following the
the financial receivable arising following the sale of 50%
merger with Enel Brasil Investimentos Sudeste SA (“Enel
of Slovak Power Holding for €186 million and (ii) the pos-
Sudeste”) in the amount of €494 million.
itive adjustment of the fair value of that receivable in the
amount of €134 million;
Group net ordinary income in 2019 amounted to €4,767 mil-
> the writedown of a financial receivable in Spain in the
lion (€4,060 million in 2018), an increase of €707 million com-
amount of €21 million associated with the Litoral coal-fired
pared with 2018. The following table provides a reconciliation
plant, which underwent impairment testing;
of Group net income with Group net ordinary income, indi-
> the revaluation in 2018 of the assets of the equity invest-
cating the non-recurring items and their respective impact on
ment measured using the equity method of Slovak Power
performance, net of the associated tax effects and non-con-
Holding in the amount of €362 million and the writedown
trolling interests.
in 2019 of the same equity investment in the amount of
€34 million;
Performance of the Group
89
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
Millions of euro
Group net income
Indemnity from disposal of interest in Enel Rete Gas
Disposal of interest in Mercure Srl
Writedown of certain assets held by Slovak Power Holding
Writedown of fuel and spare parts inventories of a number of coal-fired
plants in Italy and in Spain
Writedown of a number of coal-fired plants in Italy
Writedown of a number of coal-fired plants in Spain
Revaluation of a number of gas-fired plants Italy
Writedown of a number of coal-fired plants in Chile
Writedown of Reftinskaya coal-fired plant in Russia
Writedown of Funac receivable of Enel Distribuição Goiás
Writedown of certain intangible assets of Enel X North America
Writedown of certain assets of Enel Italia and Enel Green Power
Writedown of assets of a number of wind and hydro projects in North
America
Adjustment of purchase price of a number of Greek companies
Writedown of Alcúdia plant (Spain)
Reversal of impairment on EGP Hellas CGU and impairment of wind
projects (Cyclades islands)
Gain on sale of EF Solare Italia
Writedown of Nuove Energie CGU
Writedown of biomass and solar plants in Italy
Group ordinary net income (1)
(1) Taking account of tax effects and non-controlling interests.
2019
2,174
(49)
(97)
38
203
1,400
849
(188)
151
60
38
77
50
31
30
-
-
-
-
-
4,767
2018
4,789
(128)
-
(646)
-
-
-
-
-
-
-
-
-
-
-
43
(39)
(64)
20
85
4,060
90
Consolidated Annual Report 2019
Analysis of the Group’s financial
position and financial structure
€92,113 mln
Net capital employed
€88,941 million
at December, 31 2018
€45,175 mln
Net financial debt
+9.9% compared to 2018
+22%
Sustainable financing/Total gross
debt €61,547 million
€9,947 mln
Total capital expenditure of which
43.2% in renewables
Analysis of the Group’s financial position
Millions of euro
Net non-current assets:
- property, plant and equipment and intangible assets
- goodwill
- equity investments accounted for using the equity method
- other net non-current assets/(liabilities)
Total net non-current assets
Net current assets:
- trade receivables
- inventories
- net receivables due from institutional market operators
- other net current assets/(liabilities)
- trade payables
Total net current assets
Gross capital employed
Provisions:
- employee benefits
- provisions for risks and charges and net deferred taxes
Total provisions
Net assets held for sale
Net capital employed
Total shareholders’ equity
Net financial debt
at Dec. 31, 2019
at Dec. 31, 2018
Change
99,010
14,241
1,682
(5,022)
109,911
13,083
2,531
(3,775)
(7,282)
(12,960)
(8,403)
101,508
(3,771)
(5,722)
(9,493)
98
92,113
46,938
45,175
95,780
14,273
2,099
(5,696)
3,230
(32)
(417)
674
106,456
3,455
3.4%
-0.2%
-19.9%
11.8%
3.2%
13,587
2,818
(504)
(287)
-3.7%
-10.2%
(3,200)
(575)
-18.0%
(7,589)
(13,387)
(7,771)
98,685
(3,187)
(6,838)
(10,025)
307
427
(632)
2,823
(584)
1,116
532
4.0%
3.2%
-8.1%
2.9%
-18.3%
16.3%
5.3%
281
(183)
-65.1%
88,941
47,852
41,089
3,172
(914)
4,086
3.6%
-1.9%
9.9%
Analysis of the Group’s financial position and financial structure
91
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Property, plant and equipment and intangible assets in-
The change in goodwill mainly reflects the writedown of cer-
creased, essentially reflecting investment in the period
tain assets of a project company in North America, as the
(€9,255 million), changes in the scope of consolidation
project will no longer be pursued.
(€1,192 million), largely due to the acquisition of control of
a number of companies of EGPNA REP that had previous-
Net assets held for sale mainly regard the value of a number
ly been accounted for using the equity method, the consol-
of hydro companies accounted for using the equity method
idation of Tradewind Energy and the acquisition of YouSave.
held by EGPNA (now Enel North America) and the Rionegro
Other factors included the adjustment of the carrying amount
plant in Colombia, while as noted above the Reftinskaya GRES
(including dismantling charges) of the Bocamina I and Tara-
coal-fired plant was sold during the 4th Quarter of 2019.
pacá plants in Chile and a number of plants in Italy and Spain
(€762 million) and the effects of accounting for hyperinfla-
Net capital employed at December 31, 2019 amounted to
tion. These factors were partly offset by adverse exchange
€92,113 million and was funded by shareholders’ equity at-
rate developments (€607 million), mainly in Latin America, by
tributable to the shareholders of the Parent Company and
depreciation, amortization and impairment losses of €9,535
non-controlling interests in the amount of €46,938 million and
million for the year, and by the sale of the Reftinskaya GRES
net financial debt of €45,175 million. At December 31, 2019,
coal-fired plant to JSC Kuzbassenergo.
the debt/equity ratio was 0.96 (0.86 at December 31, 2018).
92
Consolidated Annual Report 2019 Analysis of the Group’s financial structure
Net financial debt
Net financial debt and changes in the period are detailed in the table below.
Millions of euro
Long-term debt:
- bank borrowings
- bonds
- other borrowings
Long-term debt
Long-term financial receivables and securities
Net long-term debt
Short-term debt
Bank borrowings:
- short-term portion of long-term bank borrowings
- other short-term bank borrowings
Short-term bank borrowings
Bonds (short-term portion)
Other borrowings (short-term portion)
Commercial paper
Cash collateral on derivatives and other financing
Other short-term financial payables (1)
Other short-term debt
Long-term financial receivables (short-term portion)
Financial receivables - cash collateral
Other short-term financial receivables
Cash and cash equivalents with banks and short term securities
Cash and cash equivalents and short-term financial receivables
Net short-term debt
NET FINANCIAL DEBT
Net financial debt of “Assets held for sale”
(1)
Includes current financial payables included in Other current financial liabilities.
at Dec. 31, 2019
at Dec. 31, 2018
Change
8,407
43,294
2,473
54,174
(3,185)
50,989
1,121
579
1,700
1,906
382
2,284
750
351
5,673
(1,585)
(2,153)
(369)
(9,080)
(13,187)
(5,814)
45,175
-
8,819
(412)
-4.7%
38,633
4,661
12.1%
1,531
48,983
(3,272)
942
61.5%
5,191
10.6%
87
2.7%
45,711
5,278
11.5%
1,830
(709)
-38.7%
512
2,342
1,341
196
67
13.1%
(642)
-27.4%
565
186
42.1%
94.9%
2,393
(109)
-4.6%
301
438
449
(87)
-
-19.9%
4,669
1,004
21.5%
(1,522)
(2,559)
(859)
(63)
406
490
-4.1%
15.9%
57.0%
(6,693)
(2,387)
-35.7%
(11,633)
(1,554)
-13.4%
(4,622)
(1,192)
-25.8%
41,089
4,086
9.9%
362
(362)
-
Analysis of the Group’s financial position and financial structure
93
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Net financial debt amounted to €45,175 million at Decem-
At December 31, 2019, gross financial debt amounted to
ber 31, 2019, an increase of €4,086 million compared with
€61,547 million, an increase of €5,553 million on the previous
December 31, 2018, due mainly to the increase in bond is-
year.
sues and other borrowings, only partly offset by changes in
cash holdings and financial receivables.
Gross financial debt
Millions of euro
Gross financial debt
of which:
- debt connected with achievement
of SDGs
Debt connected with achievement of
SDGs/Total gross financial debt (%)
Gross long-term
debt
at Dec. 31, 2019
Gross short-term
debt
57,583
3,964
Gross long-term
debt
at Dec. 31, 2018
Gross short-term
debt
52,350
3,644
Gross debt
61,547
13,758
-
13,758
8,535
-
22%
Gross debt
55,994
8,535
15%
More specifically, gross long-term debt (including the short-
− a credit facility of €1,000 million obtained on October
term portion) amounted to €57,583 million, of which €13,758
2, 2019 by Enel SpA linked to the achievement of the
million in respect of financing connected with achievement of
United Nations Sustainable Development Goals;
SDGs. It breaks down as follows:
− a credit line of $220 million (equivalent to €196 million)
> bonds in the amount of €45,200 million, of which €7,260
and a loan of $340 million (equivalent to €303 million) ob-
million in respect of sustainable bonds. More specifically,
tained on November 20, 2019 by Enel Finance America
bonds increased by a total of €5,226 million compared with
linked to the achievement of the United Nations’ Sustain-
December 31, 2018, mainly reflecting the following sus-
able Development Goals;
tainable issues of Enel Finance International:
> other borrowings of €2,855 million, which increased by €1,128
− €1,000 million in respect of a fixed-rate green bond, is-
million due to the application of the IFRS 16 on leases.
sued in January 2019 and maturing in 2025;
− $1,500 million (equivalent to €1,336 million) in respect
Gross short-term financial debt amounted to €3,964 million,
of a bond issue in September 2019 and maturing in Sep-
decreasing by €320 million compared with December 31, 2018.
tember 2024, linked to the Group’s ability to achieve a
It consists mainly of commercial paper in the amount of €2,284
certain percentage of installed renewables capacity by
million and cash collateral on derivatives and other financing to-
December 31, 2021 (SDG 7);
taling €750 million.
− €2,500 million in respect of multi-tranches bond issues
in October 2019 and maturing in 2024, 2027 and 2034,
Cash and cash equivalents and short- and long-term financial
linked to the Group’s ability to achieve a certain percen-
receivables came to €16,372 million, an increase of €1,467
tage of installed renewables capacity (SDG 7) and to
million compared with the end of 2018, mainly due to the
reduce direct greenhouse gas emissions (SDG 13);
increase in cash held at banks and short-term securities in
> bank borrowings of €9,528 million, of which €6,498 in re-
the amount of €2,387 million, only partly offset by declines in
spect of sustainable loans. The aggregate decreased by
cash collateral paid to counterparties and in other short-term
€1,121 million compared with the previous year, mainly re-
financial receivables in the amount of €406 million and €489
flecting repayments during the year.
million, respectively.
The following sustainable credit facilities were obtained in
2019, on which no drawings were outstanding at Decem-
ber 31, 2019:
94
Consolidated Annual Report 2019 Cash flows
Millions of euro
Cash and cash equivalents at the beginning of the year (1)
Cash flows from operating activities
Cash flows from investing/disinvesting activities
Cash flows from financing activities
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year (2)
2019
6,714
11,251
(9,115)
306
(76)
9,080
2018
7,121
11,075
(9,661)
(1,636)
(185)
6,714
Change
(407)
176
546
1,942
109
2,366
(1) Of which cash and cash equivalents equal to €6,630 million at January 1, 2019 (€7,021 million at January 1, 2018), short-term securities equal to €63 million
at January 1, 2019 (€69 million at January 1, 2018) and cash and cash equivalents pertaining to assets held for sale in the amount of €21 million at January 1,
2019 (€31 million at January 1, 2018).
(2) Of which cash and cash equivalents equal to €9,029 million at December 31, 2019 (€6,630 million at December 31, 2018), short-term securities equal to €51
million at December 31, 2019 (€63 million at December 31, 2018) and cash and cash equivalents pertaining to assets held for sale in the amount of €21 mil-
lion at December 31, 2018.
Cash flows from operating activities in 2019 were a positive
REP joint venture, which holds a number of renewable energy
€11,251 million, an increase of €176 million compared with the
project development companies (the Athena operation).
previous year, mainly reflecting the improvement in the gross
operating margin, partly offset by the increase in cash require-
Cash flows from financing activities generated an increase
ments connected with the change in net current assets.
in liquidity in the amount of €306 million, while in 2018 they
showed cash absorption of €1,636 million. The flow in 2019 is
Cash flows from investing/disinvesting activities in 2019
essentially associated with:
absorbed funds in the amount of €9,115 million, while in 2018
> the increase in net financial debt (the net balance of repay-
they had absorbed liquidity totaling €9,661 million. Capital ex-
ments and new borrowing) in the amount of €3,743 million;
penditure by Business Line is reported in the next section.
> the payment of dividends totaling €3,957 million;
Investments in entities (or business units) less cash and cash
> transactions in non-controlling interests amounting to €530
equivalents acquired amounted to €692 million and were
million, mainly regarding the increase in the interest in Enel
mainly accounted for by the acquisition through Enel Green
Américas under a number of share swap contracts with a
Power North America (EGPNA, now renamed Enel North
financial institution, which increased the stake from 51.8%
America), of 100% of seven renewables plants previously
to 59.97%, and the non-proportional capital increase in the
held by Enel Green Power North America Renewable Energy
subsidiary.
Partners (EGPNA REP), a joint venture held equally by EGPNA
and General Electric Capital’s Energy Financial Services.
In 2019, cash flows from operating activities in the amount of
Disposals of entities and business units, net of cash and cash
€11,251 million more than offset the cash needs for investing
equivalents sold, generated cash flows of €320 million. They
activities totaling €9,115 million.
mainly regarded the disposal of 100% of three solar plants in
The Group also made greater recourse to external sources
Brazil, the disposal of the business unit comprising the Mer-
of financing in order to benefit from favorable market condi-
cure biomass generation plant and the disposal by EGPNA
tions, creating a substantial liquidity buffer for use in future
(now Enel North America) of 30% of its stake in the EGPNA
operations.
Analysis of the Group’s financial position and financial structure
95
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Capital expenditure
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other, eliminations and adjustments
Total
2019
851
4,293 (1)
3,905
449
270
134
45
2018
839
2,784 (2)
3,830
374
183
106
36
Change
12
1,509
75
75
87
28
9
9,947
8,152
1,795
1.4%
54.2%
2.0%
20.1%
47.5%
26.4%
25.0%
22.0%
(1) The figure does not include €4 million regarding units classified as “held for sale”.
(2) The figure does not include €378 million regarding units classified as “held for sale”.
Capital expenditure increased by €1,795 million compared
plants in Spain, the United States, Canada, South Africa and
with 2018, mainly reflecting investment in wind and solar
Brazil.
96
Consolidated Annual Report 2019 Enel shares
Enel and the financial markets
Gross operating margin per share (euro)
Operating income per share (euro)
Group net earnings per share (euro)
Group net ordinary earnings per share (euro)
Dividend per share (euro) (1)
Group shareholders’ equity per share (euro)
Share price - 12-month high (euro)
Share price - 12-month low (euro)
Average share price in December (euro)
Market capitalization (millions of euro) (2)
No. of shares outstanding at December 31 (millions) (3)
2019
1.74
0.68
0.21
0.47
0.328
2.99
7.21
5.08
6.89
70,047
10,165
2018
1.61
0.97
0.47
0.40
0.28
3.12
5.39
4.24
4.94
50,254
10,167
(1) Dividend resolved by the Shareholders’ Meeting of May 14, 2020.
(2) Calculated on average share price in December.
(3) The change is due to the purchase of 1,549,152 treasury shares with a par value of €1.00 each
Enel stock weighting in:
- FTSE-MIB index
- FTSE-MIB index
Rating
Current (1)
at Dec. 31, 2019 at Dec. 31, 2018
at Dec. 31, 2017
16.40%
4.46%
15.04%
4.21%
13.86%
3.78%
11.68%
3.92%
Outlook
STABLE
STABLE
STABLE
STABLE
Standard & Poor’s
Medium/long-term
Short-term
Outlook
Moody’s
Medium/long-term
Short-term
Outlook
Medium/long-term
Short-term
Fitch
(1) Figures updated to January 28, 2020.
BBB+
A-2
BBB+
A-2
BBB+
A-2
BBB+
A-2
POSITIVE
POSITIVE
STABLE
STABLE
Baa2
-
Baa2
-
Baa2
-
Baa2
P2
STABLE
STABLE
STABLE
STABLE
A-
F2
A-
F2
BBB+
F2
BBB+
F2
Global economic conditions were weak in 2019, continuing
Among other key developments, 2019 was marked by a fur-
the slowdown that began in the 2nd Half of 2018. The trade
ther deceleration in the Chinese economy and the tightening
tensions between the United States and China (with the con-
of financial conditions in the United States (the consequence
sequent introduction of new tariffs), geopolitical strains, and
of the premature start to the normalization of interest rates
the persistent uncertainty about the outcome of the Brexit
by the Federal Reserve towards the end of 2018), which
negotiations all impacted investment decisions.
slowed the rapid pace of growth in that country.
Enel shares
97
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Growth was modest in the euro area, averaging 0.2% on a
dends distributed in 2019 amounted to €0.28 per share, about
quarterly basis beginning in the 2nd Quarter of 2019, mainly
18% higher than the €0.237 per share distributed in 2018.
due to weaker external demand and the difficulties in manu-
With regard to 2019, on January 22, 2020 an interim dividend
facturing and the industrial sector in general.
of €0.16 was paid, while the balance of the dividend is sche-
In Latin America, economic conditions were weak and vari-
duled for payment on July 22, 2020.
ed, marked by strong political instability (i.e. Argentina, Chile,
Peru and Bolivia).
The outlook for investors is changing rapidly: the changes
The easing of geo-political tensions (with the “phase-one”
taking place and the challenges the world presents us today
agreement between the United States at the start of 2020
are also impacting the way we invest. Companies are no lon-
and the dissipation of the risk of a hard Brexit following the
ger seen as closed systems, but rather as open systems that
overwhelming victory of the Conservatives in the British
generate wealth through interaction with the environment
elections), together with the improvement of global financial
and the communities in which they operate, and towards
conditions (the return of more expansionary monetary poli-
which they are accountable. In this context, Enel’s pursuit
cies in both the mature and emerging economies), strengthe-
of a strategy aimed at creating value through decarboniza-
ned optimism at the start of the year concerning the pace
tion and seizing the opportunities offered by electrification
of global economic recovery. However, the outbreak of the
has been understood and appreciated by institutional inve-
COVID-19 epidemic in China and the subsequent escalation
stors, whose stake in Enel at December 31, 2019 reached an
of new infections in Italy in the early months of the year have
all-time high of 60.3% (compared with 57.6% at December
radically changed the situation. To date, significant but tem-
31, 2018), while the share of individual investors has fallen to
porary and limited economic damage is forecast in the 1st
16.1% (compared with 18.8% at December 31, 2018). The
Half of the year, mainly for economies with strong econo-
interest of the Ministry for the Economy and Finance was
mic ties with China and those that have taken stringent pre-
unchanged at 23.6%.
cautionary measures to contain the spread of the virus (with
The number of Environmental, Social and Governance (ESG)
restrictions on the circulation of people and activities). The
investors continued to rise steadily: at December 31, 2019,
coming months will offer a more certain picture of the eco-
social responsible investors (SRIs) held about 10.8% of sha-
nomic consequences of the outbreak and the repercussions
re capital (against 10.5% at December 31, 2018), while inve-
on the financial markets.
stors who have signed the Principles for Responsible Invest-
ment represent 43% of share capital (39.1% at December
Despite the uncertainty in the economic environment, the
31, 2018).
main European equity indices posted gains for 2019. Spain’s
Ibex35 posted a gain of 11.8%, while France’s CAC40 rose
For further information we invite you to visit the Investor Re-
26.4% and Germany’s DAX30 increased by 25.5%.
lations section of our corporate website (http://www.enel.
The FTSE Italy All-Share registered a gain of 27.2%.
com/investors) and download the Enel Investor app, which
contains financial data, presentations, real-time updates of
The euro-area utilities segment closed the year up 22.2%.
the share price, information on the composition of corporate
bodies and the rules of shareholders’ meetings, as well as
With regard to Enel shares, 2019 ended with the stock price
periodic updates on corporate governance issues.
at €7.072, up 40.2% on the previous year, nearly double the
performance of the sector index for the euro area.
We have also created contact centers for private investors (whi-
ch can be reached by phone at +39-0683054000 or by e-mail
On January 23, 2019 Enel paid an interim dividend of €0.14 per
at azionisti.retail@enel.com) and for institutional investors (pho-
share from 2018 profits and on July 24, 2019, it paid the balance
ne: +39-0683051; e-mail: investor.relations@enel.com).
of the dividend for that year in the amount of €0.14. Total divi-
98
Consolidated Annual Report 2019 Performance of Enel share price and the Bloomberg World Electric,
Euro STOXX Utilities and FTSE Italy All-Share indices from
January 1, 2019 to January 31, 2020
€9.0
€8.5
€8.0
€7.5
€7.0
€6.5
€6.0
€5.5
€5.0
€4.5
€4.0
€3.5
€3.0
€5.044
€7.855
€6.690
€6.332
€6.033
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
2019
2020
Enel
Bloomberg World Electric
Euro STOXX Utilities
FTSE Italy All-Share
Source: Bloomberg.
Enel shares
99
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements People centricity
People management, development
and motivation
The Enel Group workforce at December 31, 2019 numbered
(a total of +75), which included the disposal of the Mercure
68,253 (down 1,019 compared with December 31, 2018). The
plant by Enel Produzione in Italy, the acquisition in March of
contraction in the Group workforce reflects the impact of
Tradewind in the United States, the disposal of the Reftin-
the balance between new hires and terminations during the
skaya GRES plant in Russia and the acquisition of PayTipper
period (-1,094) and the change in the scope of consolidation
Network Srl, FlagPay Srl and PayTipper in Italy.
at Dec. 31, 2019
at Dec. 31, 2018
9,432
7,957
34,822
6,336
2,808
6,013
885
68,253
10,286
7,478
35,740
6,492
2,733
5,646
897
69,272
69,272
3,726
(4,820)
75
68,253
No.
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other
Total
Change in workforce
No.
Balance at December 31, 2018
Hirings
Terminations
Change in the scope of consolidation
Balance at December 31, 2019
100
Consolidated Annual Report 2019 Breakdown of changes in workforce
Hiring rate
New hires by gender:
- of which men
- of which women
New hires by age group:
- <30
- 30-50
- >50
New hires by geographical area:
- Italy
- Iberia
- Latin America
- Europe and Euro-Mediterranean Affairs
- North America
- Africa, Asia and Oceania
Turnover rate
Terminations by gender:
- of which men
- of which women
Terminations by age group:
- <30
- 30-50
- >50
Terminations by geographical area:
- Italy
- Iberia
- Latin America
- Europe and Euro-Mediterranean Affairs
- North America
- Africa, Asia and Oceania
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
no.
%
2019
5.5%
3,726
2,702
72.5%
1,024
27.5%
3,726
1,865
50.1%
1,698
45.6%
163
4.4%
3,726
1,042
28.0%
430
11.5%
1,098
29.5%
528
14.2%
435
11.7%
193
5.2%
7.1%
4,820
3,766
78.1%
1,054
21.9%
4,820
626
13.0%
1,867
38.7%
2,327
48.3%
4,820
1,607
33.3%
254
5.3%
2,103
43.6%
369
7.7%
392
8.1%
95
2.0%
2018
4.9%
3,414
2,410
70.6%
1,004
29.4%
3,414
1,622
47.5%
1,628
47.7%
164
4.8%
3,414
796
23.3%
425
12.5%
1,182
34.6%
345
10.1%
594
17.4%
72
2.1%
6.9%
4,746
3,846
79.8%
900
18.7%
4,746
499
10.4%
1,532
31.8%
2,715
56.3%
4,746
1,668
34.6%
425
8.8%
1,862
38.6%
384
8.0%
374
7.8%
33
0.7%
Change
11.6%
9.1%
12.1%
2.7%
2.0%
-6.6%
9.1%
15.0%
5.4%
4.3%
-4.5%
-0.6%
-9.2%
9.1%
30.9%
20.0%
1.1%
-7.4%
-7.1%
-14.9%
53.0%
40.2%
-26.8%
-32.9%
-
-
3.1%
1.6%
-2.1%
-2.1%
17.1%
17.1%
1.6%
25.5%
25.5%
21.9%
21.9%
-14.3%
-14.3%
-3.7%
-3.7%
-40.3%
-40.3%
12.9%
12.9%
-3.9%
-3.9%
4.8%
4.8%
-
-
0.6
312
292
1.9
20
-1.9
312
243
2.6
70
-2.1
(1)
-0.4
312
246
4.7
5
-0.9
(84)
-5.1
183
4.1
(159)
-5.7
121
3.1
0.02
74
(80)
-1.7
154
3.2
74
127
2.6
335
7.0
(388)
-8.1
(61)
-1.3
(171)
-3.5
241
5.0
(15)
-0.3
18
0.4
62
1.3
People centricity
101
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
The energy transition is opening new horizons for the Group,
Enel is going beyond the traditional concept of training, stimu-
not only for the business but above all for the people who work
lating the individual’s ability to undertake a learning path accor-
for us. In this context, Enel has begun specific upskilling and
ding to his or her specific needs, passions and aptitudes. In
reskilling programs. The former focus on developing existing
2019, more than 2.6 million hours of training were provided, co-
professional skills, adding new skills dictated by technology
vering managerial, technical, behavioral and language training,
and innovative processes. Reskilling, on the other hand, seeks
as well as health and safety, skills and digital culture. Enel has
to create new job profiles, replacing skills that are becoming
also set itself the goal of involving 100% of our employees in
obsolete or no longer in demand, and to enable people to tackle
digital skills training by 2022; to date we have involved 46% of
new activities. Selection, hiring and internal mobility processes
our people.
therefore play a key role, as do partnerships with universities.
Average training hours per employee
Average number of training hours
Average number of training hours by level:
- senior managers
- middle managers
- office staff
- blue collar
Average number of training hours by gender:
- men
- women
2019
38.8
58.4
44.9
29.6
49.6
39.7
35.0
2018
40.2
40.3
42.2
33.5
50.1
41.2
36.2
Change
(1.4)
-3.5%
18.1
2.7
(3.9)
(0.5)
(1.5)
(1.2)
44.9%
6.5%
-11.6%
-0.9%
-3.5%
-3.3%
In 2019, the process of evaluating quantitative and qualitati-
principle of respect for the inegrity and dignity of the indivi-
ve performance involved various levels of the Group’s per-
dual in the workplace. Enel’s approach is based on the fun-
sonnel in a fluid and comprehensive exchange process. In
damental principles, enunciated in the diversity and inclusion
2019, 100% of eligible personnel(1) were involved, of whom
policy, of non-discrimination, equal opportunities and human
99% were evaluated. Quantitative appraisals, in turn, were
dignity in all its forms, inclusion and promoting work-life ba-
conducted for employees with variable remuneration plans,
lance. The application of our policies has enabled us to de-
which involved the assignment of specific targets. The cor-
velop global and local projects to promote diversity in terms
porate-climate survey plays an important role within the
of gender, age, nationality and disability, and to advance the
Company as it enables the identification of areas of improve-
culture of inclusion at all levels of the Group and in every si-
ment in three key areas – wellness, engagement and safety
tuation that can be encountered in the workplace. The impact
– and the gathering suggestions on working life issues and
of these policies is being monitored on the basis of a detai-
aspects. The action plans developed following the 2018 sur-
led set of indicators associated with the various actions and
vey are being implemented.
contexts. More specifically, Enel has set the public objective
Enel’s commitment to promoting diversity and inclusion is a
of ensuring equal gender representation in the initial stages
process that started in 2013 with the adoption of our policy
of the selection and recruiting process (about 50% by 2021).
on human rights, followed in 2015 by our global diversity and
In 2019, in line with the established trajectory, women ac-
inclusion policy, In 2019, the global workplace harassment
counted for 42% of participants in selection processes, an
policy was published. It addresses the issue of sexual haras-
increase on the 39% registered in 2018.
sment and other forms of harassment, making explicit the
(1) Eligible employees: employees who have an open-ended contract and were employed for at least three months in 2019. Provisional figure as the completion
of the assessment process has been postponed until May 2, 2020 owing to the COVID-19 emergency.
102
Consolidated Annual Report 2019 no.
%
no.
%
%
%
%
Diversity and inclusion
Workforce by gender:
- of which men
- of which women
Workforce by age group:
- <30
- 30-50
- >50
Workforce by level:
- manager (%)
- middle manager (%)
- white collar (%)
- blue collar (%)
Disabled personnel or personnel
belonging the protected categories (%)
Women in management positions (no.)
2019
68,253
53,933
79%
14,320
21%
68,253
11.6%
54.6%
33.8%
68,253
2.0%
16.6%
53.1%
28.3%
3.3%
285
2018
69,272
54,972
81%
14,300
21%
69,272
11.8%
57.0%
31.2%
69,272
1.9%
15.9%
50.1%
32.1%
3.2%
265
Change
(1,019)
(1,039)
-2
20
-
(1,019)
-0.2
-2.4
2.6
(1,019)
0.1
0.7
3.0
-3.8
0.1
20
-1.5%
-1.9%
-1.9%
0.1%
0.1%
-1.5%
-1.9%
-4.2%
8.4%
-1.5%
2.8%
4.6%
6.1%
-11.9%
3.2%
7.5%
Workplace health and safety
> Inter BL Integration, to strengthen the synergy of the
actions of the individual Business Lines with the Countries
Enel considers employee health, safety and general well-
and Regions;
being to be its the most valuable asset, one to be preserved
> Contractors’ Engagement to improve the safety standards
both at work and at home. We are committed to developing
of companies that work with Enel.
and promoting a strong culture of safety throughout the world
in order to ensure a healthy work environment. Quality and
Safety is integrated into tender processes, and we closely
safety must go hand in hand. All of us are responsible for
monitor our contractors’ performance both upstream with
our own health and safety and that of the people with whom
our qualification system and ongoing as the contracts pro-
we interact and, as provided for in the Enel “Stop Work Poli-
gress through numerous control processes and tools such as
cy”, they are required to promptly report and halt any situation
the Supplier Performance Management (SPM) system. Du-
of risk or unsafe behavior. The constant commitment of us
ring 2019, we prepared the HSE Terms document, attached
all, the integration of safety both in our processes and in our
to all contracts, which companies must sign when contracts
training, the reporting and analysis of near misses, rigor in
are awarded. The document, unique for the Group, defines
the selection and management of contractors, controls over
the requirements regarding health, safety and significant en-
quality, the sharing of experience throughout the Group and
vironmental aspects that the contractor must comply with
benchmarking against the leading international players are all
and enforce with their subcontractors during the execution
cornerstones of Enel’s culture of safety.
of works. In addition, considerable impulse was given to the
In 2019 the SHE 2.019 project was launched, continuing the
sues to be undertaken at the supplier’s premises and on wor-
activities of the SHE 365 project. It involves both the Group’s
ksites. The audits are performed during the qualification pha-
personnel and suppliers in initiatives concerning safety, health
se for each new supplier, in cases where critical issues have
and the environment. During last year, this concrete and opera-
emerged (severe or fatal injuries) or where the supplier has
tional commitment was increasingly focused on the Group’s bu-
received a low SPM rating. In 2019, a total of 746 contractor
“Safety Supplier Assessment”, specific audits on safety is-
siness, strengthening the lines of work along three main lines:
assessments were performed.
> the Commitment Chain, focusing on preventing severe or
fatal injuries;
People centricity
103
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Injury frequency rate (FR) - Enel (1)
Fatal injuries at Enel
“High consequence” injuries at Enel (2)
Fatal injuries at contractors (3)
“High consequence” injuries at contractors (2)
Unit
i
no.
no.
no.
no.
2019
0.899
1
3
6
16
2018
0.943
1
5
7
13
Change
(0.04)
-
(2)
(1)
3
-4.7%
-
-40.0%
-14.3%
23.1%
(1) This index is calculated as the ratio between the number of injuries (all injury events including those with three or fewer missed days of work) and hours wor-
ked/1,000,000.
(2) Sum of:
- injuries that at December 31, 2019 involved more than 6 months of absence from work;
- injuries that at December 31, 2019 were still under investigation and are considered serious (initial prognosis > 30 days;
- injuries classified as “life changing accidents” (LCA), regardless of the number of missed days of work connected with them.
(3) For 2018, considering all the areas in which the Group operates and the activities managed, including companies accounted for using the equity method and
companies operating under the BSO (build, sell and operate) model, the number of fatal injuries totaled 8.
In 2019, the injury frequency rate (FR) for Enel employees
of stress in work situations, also providing recommendations
declined to 0.90 injuries for every million hours worked (-5%
aimed at promoting a culture of organizational wellbeing.
compared with 2018), confirming the effectiveness of the sa-
A number of health and safety communication campaigns
fety strategy and policies implemented in the Group.
were conducted during the year in areas of specific concern
In 2019, 1 fatal accident occurred involving an employee of the
for the Company, while some 692,000 hours of training were
Enel Group, and 6 fatal accidents involving contractors. The
provided to Enel personnel. In 2019, innovation projects on
causes were mainly associated with mechanical incidents.
safety were continued and new initiatives were launched, fo-
Also in 2019, 3 “high consequence” accidents occurred in-
cusing on prevention and protection measures, the execution
volving employees of the Enel Group, and 16 such accidents
and analysis of corrective controls, as well as staff training.
involving contractors, mainly of a mechanical nature.
The Enel Group has established a structured health manage-
ment system, based on prevention measures to develop a
corporate culture that promotes psycho-physical health, or-
Responsible relations
with communities
ganizational wellbeing and a balance between personal and
The energy sector is undergoing a profound transformation
professional life. With this in mind, the Group conducts global
and our ever greater emphasis on social and environmental
and local awareness campaigns to promote healthy lifestyles,
factors, together with an inclusive approach, allows us to
sponsors screening programs aimed at preventing the onset
create long-term value for Enel and for the communities in
of diseases and guarantees the provision of medical services.
which we operate. This model has been incorporated along
More specifically, we have a policy for the prevention of local
the entire value chain: analyzing the needs of communities
diseases and provide support in the event of diseases or ac-
right from the development phases of new activities; taking
cidents abroad. A smartphone application has also been in-
account of social and environmental factors in the establish-
troduced with travel information, a guideline on vaccinations,
ment of sustainable worksites; managing assets and plants
and a new global insurance policy has been taken out for all
to make them sustainable development platforms to the be-
employees traveling abroad. Furthermore, the Group constant-
nefit of the territories in which they are located. Another de-
ly monitors epidemiological and health developments in order
velopment was the broadening of this approach in the design,
to implement plans for preventive and protective measures
development and supply of energy services and products,
to preserve the health of its employees and those who work
helping to build cities that are increasingly sustainable and
for the Group, both locally and globally. In addition, the Enel
deploying new technologies. Enel is committed to respecting
Group has a systematic and ongoing process for identifying
the rights of communities and to contributing to their eco-
and assessing work-related stress risks, in accordance with
nomic and social development, interacting every day with a
the “Stress at Work Prevention and Wellbeing at Work Promo-
multitude of stakeholders. In 2019, Enel, with some 1,800
tion” policy, for the prevention, identification and management
projects and more than 4 million beneficiaries(2), contributed
(2) Beneficiaries are the people for which a project is implemented. Enel only considers direct beneficiaries in the current year. The number of beneficiaries includes
the activities and projects carried out in all the areas in which the Group operates (for companies within the scope of the NFS, the number of beneficiaries does
not include companies accounted for using the equity method, Group foundations and non-profit organizations and companies operating within the Build, Sell
and Operate mechanism).
104
Consolidated Annual Report 2019 to the establishment of ecosystems in the countries in which
by 2030) and supported quality education (SDG 4), reaching
it operates to guarantee access to electricity in rural areas
1.3 million beneficiaries in 2019 (with a target of 2.5 million be-
and address inadequate power supplies (SDG 7), reaching
neficiaries by 2030). Contributing to this were also more than
7.9 million beneficiaries in 2019 (with a target of 10 million
800 partnerships with local organizations, social enterprises,
beneficiaries by 2030); promoted the economic and social de-
universities, international associations and non-governmental
velopment in the communities (SDG 8), reaching 2.1 million
organizations in the various countries.
beneficiaries in 2019 (with a target of 8.0 million beneficiaries
People centricity
105
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The innovation ecosystem
For Enel, innovation and digitalization are key pillars of its stra-
protagonists of the challenges launched on the site through
tegy to grow in a rapidly changing context while ensuring high
calls for applications. Activities to promote and develop the
safety standards, business continuity and operational efficien-
culture of innovation and entrepreneurship within the Com-
cy, and thus enabling new uses of energy and new ways of
pany also continued through the Innovation Academies and
managing it, making it accessible to an ever larger number of
the Innovation Ambassadors project.
people.
Furthermore, in 2019 the activities of the innovation commu-
Enel operates through an Open Innovability model, a consen-
nities continued, involving different areas and skills within
sus-based ecosystem that makes it possible to connect all
the Company. Energy storage, blockchain, drones, augmen-
areas of the Company with startups, industrial partners, small
ted and virtual reality, 3D printing, artificial intelligence, wea-
and medium-sized enterprises, research centers and univer-
rables, robotics and green hydrogen are the areas and techno-
sities through a variety of system, such as crowdsourcing
logies addressed within these communities. In recent years,
platforms and the Innovation Hub network. Enel has nume-
Enel has intensified the use of drones in the monitoring and
rous innovation partnership agreements that, in addition to
maintenance of its assets, inspecting solar fields, wind far-
Enel’s traditional lines of business such as renewables and
ms, dams and hydroelectric reservoirs, closed components in
conventional generation, have promoted the development
traditional plants and distribution lines with the aim of increa-
of new solutions for e-mobility, microgrids, energy efficiency
sing the efficiency of operational and maintenance processes
and the industrial Internet of Things (IoT). During 2019, Enel
and above all reduce workers’ exposure to risks. Furthermore,
opened 1 new hub in Boston, expanding our presence in the
storage systems, in addition to guaranteeing ongoing support
leading innovation ecosystems in the world, with 7 Innova-
for current business activities, pave the way to new frontiers
tion Hubs (Silicon Valley, Boston, Tel Aviv, Madrid, Moscow,
of sustainable business. Finally, in 2019 a community was
Santiago de Chile and Rio de Janiero) and 3 Innovation Hub
born with the aim of applying green hydrogen produced by
& Labs (Catania, Pisa and Milan). Thanks to our presence in
electrolysis powered by renewable electricity. We consider it
innovation ecosystems and the organization of bootcamps,
the only way to sustainably produce hydrogen in the long run,
scouting initiatives dedicated to specific technologies of in-
as it is characterized by zero greenhouse gas emissions and
terest to the Group, in 2019 Enel forged contacts with some
powered from renewable sources. As of 2019, over €84 mil-
2,500 start-ups. The online crowdsourcing platform Openin-
lion have been invested in technological innovation.
novability.com is a digital forum where project ideas are the
Customer management
Our constant focus on the customer and our commitment
residential and business markets, the Company confirmed its
to delivering high-quality products and services are important
focus of the last few years, with dedicated offers with a lower
factors that distinguish Enel in the relationship with its custo-
environmental impact and a concentration on the most vul-
mers in the various countries in which the Group operates.
nerable segments of the population. In fact, all the countries
Reliable, secure and uninterrupted distribution, together with
in which the Group operates provide forms of support (often
quality, efficiency and transparency in electricity sales are the
linked to government initiatives) which assist these segments
hallmark of every phase of our relationship with customers.
of the population in paying their electricity and gas bills, so as
Enel’s leadership position has been gained thanks to the at-
to give everyone equal access to electricity.
tention we place on the customer in providing quality ser-
Enel has also established numerous processes to ensure cu-
vices: aspects that concern more than just the provision of
stomers receive a high level of service. In Italy, the commer-
electricity and/or natural gas, extending, above all, to intangi-
cial quality of all our contact channels (customer service calls,
ble aspects of our service that relate to the perception and sa-
Enel Points and stores, utility bills, app, e-mail, social media,
tisfaction of our customers. Through our products for both the
account manager, fax) is ensured through systematic moni-
106
Consolidated Annual Report 2019 toring of the sales and management processes in order to
systems, boilers, maintenance services, lighting, etc.), go-
ensure compliance with applicable laws and regulations and
vernment customers (public lighting, monitoring services for
respect for the privacy, freedom and dignity of our customers.
smart cities, surveillance systems, etc.) and large customers
Enel also confirms its interest in digitalization, electronic in-
(demand response services, consulting and energy efficiency
voicing and new services. With Enel X, we offer innovative
solutions). We also promote electric mobility through the de-
solutions to residential customers (technological solutions
velopment of public and private charging infrastructures.
for smart homes, home automation, solar and photovoltaic
Sustainable supply chain
Enel bases its procurement processes on pre-contractual
Vendor management involves three essential stages, which
and contractual conduct centered around mutual good faith,
integrate social, environmental and governance issues, the
transparency and collaboration. In addition to meeting certain
qualification system; the definition of general terms and con-
quality standards, the services of our vendors must also go
ditions of contract and the Supplier Performance Manage-
hand in hand with the adoption of best practices in terms of
ment (SPM) system in the evaluation process. Enel’s global
human rights and working conditions, health and safety and
vendor-qualification system (with about 8,200 active qualifi-
environmental and ethical responsibility. Our procurement
cations as at December 31, 2019) enables us to accurately
procedures are designed to guarantee service quality in full
assess businesses that intend to participate in tender pro-
respect of the principles of economy, effectiveness, timeli-
cesses and serves as a guarantee for the Company, while
ness, fairness and transparency. The procurement process
the SPM system seeks to monitor vendor services in terms
plays a central role in value creation in its various forms (sa-
of the quality, timeliness and sustainability of contract exe-
fety, savings, timeliness, quality, earnings, revenue, flexibility)
cution. Furthermore, we continued working on those activi-
as a result of ever-greater interaction and integration with the
ties that enable the ever-greater integration of environmental,
outside world and the different parts of the company organi-
social and governance issues in the supply chain strategy,
zation. In 2019, we signed agreements with a total of more
creating shared value with vendors in a vision of a circular
than 30,000 vendors.
economy.
The innovation ecosystem
107
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Value created for stakeholders
Millions of euro
Revenue
Income/(Expense) from commodity risk
External costs
Gross global value added from continuing operations
Gross value added from discontinued operations
2019
80,327
(733)
56,022
23,572
23,572
3,050
2,609
4,634
2,069
11,210
2018
75,575
532
53,833
22,274
22,274
2,765
2,493
4,582
3,168
9,266
Gross global value added
distributed to:
Shareholders
Lenders
Employees
Government
Enterprises
Enel’s stakeholders are individuals, groups or institutions
shared by Enel gives a good indication of how the Group has
whose contribution is needed to achieve our mission or who
created wealth for the following stakeholders: shareholders,
have a stake in its pursuit. The economic value created and
lenders, employees and government.
108
Consolidated Annual Report 2019 Results by business area
The representation of performance by business area presen-
re adopted the following reporting sectors:
ted here is based on the approach used by management in
> Primary sector: business area;
monitoring Group performance for the two periods under re-
> Secondary sector: geographical area.
view, taking account of the operational model adopted by the
The business area is therefore the main discriminant in the
Group as described above.
analyzes performed and decisions taken by the management
With regard to disclosures for operating segments, beginning
of the Enel Group, and is fully consistent with the internal
with the close of the accounts at September 30, 2019, the
reporting prepared for these purposes since the results are
Enel Group has changed its primary and secondary reporting
measured and evaluated first and foremost for each business
segments in accordance with the provisions of IFRS 8. Spe-
area and only thereafter are they broken down by country.
cifically, bearing in mind that in 2019 management began to
The following chart outlines these organizational arrange-
report performance by business area, the Group has therefo-
ments.
Holding
Regions
and Countries
Global Business Lines
Local Businesses
Thermal
Generation
Trading
Enel Green
Power
Infrastructure
and Networks
Enel X
End-user
markets
Services
Italy
Iberia
Europe and Euro-
Mediterranean
Affairs
Africa, Asia
and Oceania
North and
Central America
Latin
America
Results by business area
109
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements In particular, the new organization continues to be based on
Costa Rica, Guatemala, El Salvador and Nicaragua, which had
matrix of Business Lines (Thermal Generation and Trading, Enel
previously been reported in the North and Central America ge-
Green Power, Infrastructure and Networks, End-user Markets,
ographical area (now renamed North America and consisting
Enel X, Services and Holding/Other) and geographical are-
of the following countries: United States, Canada and Mexico).
as (Italy, Iberia, Europe and Euro-Mediterranean Affairs, Latin
In order to ensure full comparability of the figures commen-
America, North America, Africa, Asia and Oceania, Central/Hol-
ted here in the light of the new breakdown of the primary and
ding).
secondary reporting sectors for IFRS 8 disclosure purposes
Finally, it should be noted that with effect from September
and of the reallocation of countries in the Enel Green Power
2019, the Latin America area connected with the Enel Gre-
segment, the comparative figures for 2018 have been restated
en Power Business Line also includes the countries Panama,
appropriately.
Results by business area for 2019 and 2018
Results for 2019 (1)
Millions of euro
Revenue and other income
from third parties
Revenue and other income
from transactions with other
segments
Total revenue and other
income
Net income/(expense) from
commodity risk management
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
30,519
7,360
20,092
19,482
967
1,901
6
80,327
1,532
373
1,697
13,062
163
80
(16,907)
-
32,051
7,733
21,789
32,544
1,130
1,981
(16,901)
80,327
(676)
14
-
(71)
Gross operating margin
1,395
4,604
8,278
3,287
Depreciation, amortization, and
impairment losses
4,889
1,328
3,001
1,124
Operating income
(3,494)
3,276
5,277
2,163
Capital expenditure
851
4,293 (2)
3,905
449
-
158
256
(98)
270
-
126
201
(75)
134
-
(733)
(144)
17,704
27
10,826
(171)
45
6,878
9,947
(1) Segment revenue includes both revenue from third parties and revenue flows between the segments. An analogous approach was taken for other income and
costs for the period.
(2) Does not include €4 million regarding units classified as “held for sale”.
110
Consolidated Annual Report 2019 Results for 2018 (1) (2)
Millions of euro
Revenue and other income
from third parties
Revenue and other income
from transactions with other
segments
Total revenue and other
income
Net income/(expense) from
commodity risk management
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
26,630
7,613
18,250
20,340
849
1,878
15
75,575
977
443
1,718
13,431
157
60
(16,786)
-
27,607
8,056
19,968
33,771
1,006
1.938
(16,771)
75,575
640
(162)
-
(11)
Gross operating margin
1,117
4,608
7,539
3,079
Depreciation, amortization, and
impairment losses
Operating income
Capital expenditure
1,235
1,103
2,752
1,121
(118)
3,505
839
2,784 (3)
4,787
3,830
1,958
374
-
124
105
19
183
65
85
123
(38)
106
-
532
(201)
16,351
12
6,451
(213)
36
9,900
8,152
(1) Segment revenue includes both revenue from third parties and revenue flows between the segments. An analogous approach was taken for other income and
costs for the period.
(2) The figures have been restated to ensure comparability with the results for 2019, which are reported using business areas as the primary reporting segment.
(3) Does not include €378 million regarding units classified as “held for sale”.
In addition to the above, the Group monitors performance
two periods under review with the goal of providing a view of
by geographical area, classifying results by Region/Country.
performance not only by Business Line, but also by Region/
In the table below, gross operating margin is shown for the
Country.
Results by business area
111
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Gross operating margin
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other
Total
2019
(14)
590
642
165
107
211
14
145
-
-
209
(2)
209
2
(18)
(16)
(2)
-
-
-
-
2018
Change
22
425
469
142
7
124
51
145
-
-
233
-
233
-
(6)
(6)
-
-
-
-
-
(36)
165
173
23
100
87
(37)
-
-
-
(24)
(2)
(24)
2
(12)
(10)
(2)
-
-
-
-
2019
1,240
358
2,218
51
335
899
620
162
112
39
112
75
(1)
38
737
658
79
62
58
8
(4)
2018
Change
1,220
361
2,201
46
395
877
544
156
113
70
115
62
(1)
54
538
398
140
58
54
9
(5)
20
(3)
17
5
(60)
22
76
6
(1)
(31)
(3)
13
-
(16)
199
260
(61)
4
4
(1)
1
2019
3,906
2,025
2,259
271
1,144
222
399
223
-
-
107
107
-
-
-
-
-
-
-
-
-
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
3,679
1,965
1,763
173
815
228
364
183
-
-
152
152
-
-
-
-
-
-
-
-
-
227
60
496
98
329
(6)
35
40
-
-
(45)
(45)
-
-
-
-
-
-
-
-
-
(14)
1,395
(26)
1,117
12
278
(123)
4,604
115
4,608
(238)
(4)
(19)
8,278
(20)
7,539
1
739
3,287 3,079
208
9
126
(11)
85
20
41
(144)
(201)
(144)
(201)
57
57
(327)
(159)
17,704 16,351
(168)
1,353
2,314 2,233
715
243
2
149
17
60
15
676
158
(16)
100
19
42
13
15
15
12
12
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
81
39
85
18
49
(2)
18
2
-
-
3
3
-
-
-
-
-
-
-
-
-
-
13
38
64
-
(1)
26
38
1
-
-
-
-
-
-
6
(2)
(4)
80
80
(1)
(1)
(36)
158
31
51
56
19
37
-
-
-
-
-
3
3
-
-
3
3
-
-
-
(4)
(4)
(16)
124
(123)
(104)
169
66
(1)
(49)
(72)
(1)
5
5
-
-
-
-
-
-
-
-
-
-
-
-
119
80
(1)
(42)
(61)
1
1
-
-
-
-
-
-
-
-
-
-
-
-
-
(18)
(13)
(1)
8
-
7
1
1
-
-
(3)
3
(2)
(4)
77
77
-
3
4
-
(1)
(20)
34
50
(14)
(19)
(7)
(11)
(1)
4
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,628
7,304
3,792
3,558
5,303
4,543
488
344
1,685
1,275
1,303
1,206
1,131
1,038
448
516
545
112
39
206
206
36
799
722
77
61
58
8
(5)
497
113
70
230
232
54
535
395
140
54
50
9
(5)
324
234
760
144
410
97
93
48
(1)
(31)
(68)
(24)
(26)
(18)
264
327
(63)
7
8
(1)
-
Italy
Iberia
Latin America
Argentina
Brazil
Chile
Colombia
Peru
Panama
Other countries
Europe and Euro-
Mediterranean Affairs
Romania
Russia
Other countries
North America
United States and Canada
Mexico
Africa, Asia and Oceania
South Africa
India
Other countries
Other
Total
112
Consolidated Annual Report 2019 Italy
Iberia
Latin America
Argentina
Brazil
Chile
Colombia
Peru
Panama
Other countries
Europe and Euro-
Mediterranean Affairs
Romania
Russia
Other countries
North America
United States and Canada
Mexico
Africa, Asia and Oceania
South Africa
Other countries
India
Other
Total
2019
(14)
590
642
165
107
211
14
145
209
(2)
209
2
(18)
(16)
(2)
-
-
-
-
-
-
2019
1,240
358
2,218
1,220
361
2,201
51
335
899
620
162
112
39
112
75
(1)
38
737
658
79
62
58
8
(4)
46
395
877
544
156
113
70
115
62
(1)
54
538
398
140
58
54
9
(5)
(36)
165
173
23
100
87
(37)
(24)
(2)
(24)
2
(12)
(10)
(2)
-
-
-
-
-
-
-
22
425
469
142
7
124
51
145
233
233
(6)
(6)
-
-
-
-
-
-
-
-
-
2019
3,906
2,025
2,259
271
1,144
222
399
223
107
107
-
-
-
-
-
-
-
-
-
-
-
(60)
20
(3)
17
5
22
76
6
(1)
(31)
(3)
13
-
(16)
199
260
(61)
4
4
1
(1)
3,679
1,965
1,763
173
815
228
364
183
152
152
-
-
-
-
-
-
-
-
-
-
-
227
60
496
98
329
(6)
35
40
(45)
(45)
-
-
-
-
-
-
-
-
-
-
-
(14)
1,395
(26)
1,117
12
278
(123)
4,604
115
4,608
(238)
(4)
(19)
8,278
(20)
7,539
1
739
Millions of euro
Thermal Generation and Trading
Enel Green Power
Infrastructure and Networks
End-user Markets
Enel X
Services
Other
Total
2018
Change
2018
Change
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2019
2018
Change
2,314 2,233
715
243
2
149
17
60
15
-
-
15
15
-
-
-
-
-
-
-
-
-
-
676
158
(16)
100
19
42
13
-
-
12
12
-
-
-
-
-
-
-
-
-
-
81
39
85
18
49
(2)
18
2
-
-
3
3
-
-
-
-
-
-
-
-
-
-
3,287 3,079
208
13
38
64
-
(1)
26
38
1
-
-
-
6
(2)
(4)
80
80
-
(1)
-
-
(1)
(36)
158
31
51
56
-
-
19
37
-
-
-
3
3
-
-
3
3
-
(4)
(4)
-
-
(16)
124
(18)
(13)
8
-
(1)
7
1
1
-
-
(3)
3
(2)
(4)
77
77
-
3
4
-
(1)
(20)
34
169
66
119
80
(123)
(104)
(1)
(49)
(72)
-
(1)
-
-
5
5
-
-
-
-
-
-
-
-
-
(1)
(42)
(61)
-
-
-
-
1
1
-
-
-
-
-
-
-
-
-
50
(14)
(19)
-
(7)
(11)
-
(1)
-
-
4
4
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,628
7,304
3,792
3,558
5,303
4,543
488
344
1,685
1,275
1,303
1,206
1,131
1,038
545
112
39
497
113
70
448
516
206
206
36
799
722
77
61
58
8
(5)
230
232
54
535
395
140
54
50
9
(5)
324
234
760
144
410
97
93
48
(1)
(31)
(68)
(24)
(26)
(18)
264
327
(63)
7
8
(1)
-
9
126
(11)
85
20
41
(144)
(201)
(144)
(201)
57
57
(327)
(159)
17,704 16,351
(168)
1,353
Results by business area
113
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 114
Consolidated Annual Report 2019
Consolidated Annual Report 2019 Thermal Generation and Trading
129.7 TWh
Net electricity generation
-41.6% from coal-fired plants
compared to 2018
42.2 GW
Net efficient generation capacity
-26.1% from coal-fired plants
compared to 2018
3.5%
Percentage of coal revenue
out of total
€1,395 mln
Gross operating margin
€1,117 million in 2018
Operations
Net electricity generation
Millions of kWh
Coal-fired plants
Fuel-oil and turbo-gas plants
Combined-cycle plants
Nuclear plants
Total net generation
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe and Euro-Mediterranean Affairs
2019
37,592
20,887
44,980
26,279
2018
64.366
24,832
38,134
24,067
129,738
151,399
22,604
51,312
23,388
32,434
27,757
62,020
22,441
39,181
Change
(26,774)
(3,945)
6,846
2,212
(21,661)
(5,153)
(10,708)
947
(6,747)
-41.6%
-15.9%
18.0%
9.2%
-14.3%
-18.6%
-17.3%
4.2%
-17.2%
The decrease in net generation was essentially due to a sharp
increase of 6,846 million kWh in combined-cycle generation,
decrease in coal generation in the amount of 26,774 million
mainly in Italy (3,013 million kWh), Iberia (2,731 million kWh)
kWh, including Iberia (14,673 million kWh), Italy (7,941 million
and Latin America (1,092 million kWh). The increase in nuclear
kWh) and Russia (5,239 million kWh) as a result of the de-
generation can be attributed to the increased use of nuclear
cline in their competitiveness. This was partially offset by an
energy in Iberia due to poor water availability.
Results by business area
115
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Net efficient generation capacity
MW
Coal-fired plants
Fuel-oil and turbo-gas plants
Combined-cycle plants
Nuclear plants
Total
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe and Euro-Mediterranean Affairs
at Dec. 31, 2019
at Dec. 31, 2018
Change
11,695
12,211
14,991
3,318
42,215
13,480
15,957
7,523
5,255
15,828
12,250
15,021
3,318
46,417
13,613
16,192
7,734
8,878
(4,133)
(39)
(30)
-
(4,202)
(133)
(235)
(211)
-26.1%
-0.3%
-0.2%
-
-9.1%
-1.0%
-1.5%
-2.7%
(3,623)
-40.8%
The decrease in net efficient generation capacity reflects the
thermal and coal-fired plants respectively, has been declining
reduced use of coal-fired plants, especially in Russia (3,623
steadily as a result of corporate strategic choices inspired by
MW) following the disposal of the Reftinskaya plant mentio-
a sustainable business model pursuing objectives to combat
ned earlier.
climate change and achieve decarbonization, as shown in the
More generally, “thermal” and “coal” revenue, i.e., from
following table (including percentage out of total):
2019
10,322
2,827
1,296
12.8%
3.5%
1.6%
2018
10,894
4,043
1,080
14.4%
5.3%
1.4%
2019
32,051
1,395
(3,494)
851
2018
27,607
1,117
(118)
839
Change
4,444
278
(3,376)
12
16.1%
24.9%
-
1.4%
Millions of euro
“Thermal” revenue
“Coal” revenue
“Nuclear” revenue
Percentage of “thermal” revenue out of total
Percentage of “coal” revenue out of total
Percentage of “nuclear” revenue out of total
Performance
Millions of euro
Revenue
Gross operating margin
Operating income
Capital expenditure
116
Consolidated Annual Report 2019 The following tables show a breakdown of performance by Region/Country in 2019.
Revenue
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe and Euro-Mediterranean Affairs
- of which Romania
- of which Russia
- of which other countries
Other
Eliminations and adjustments
Total
2019
23,688
6,261
1,915
323
289
828
110
365
29
956
42
911
3
54
(852)
32,051
2018
18,954
6,329
1,726
227
270
739
126
364
3
1,054
55
999
-
81
(540)
27,607
Change
4,734
(68)
189
96
19
89
(16)
1
26
(98)
(13)
(88)
3
(27)
(312)
4,444
25.0%
-1.1%
11.0%
42.3%
7.0%
12.0%
-12.7%
0.3%
-
-9.3%
-23.6%
-8.8%
-
-33.3%
-57.8%
16.1%
The change in revenue is mainly attributable to the item
to non-financial transactions with physical delivery measured
“Sale of commodities under contracts with physical delivery”,
at fair value in accordance with IFRS 9. For more information,
reflecting reclassifications, with no impact on margins, linked
please see section 4.3 of the notes to the consolidated finan-
to the application of the IFRIC Agenda Decision of March 2019
cial statements.
Gross operating margin
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe and Euro-Mediterranean Affairs
- of which Romania
- of which Russia
- of which other countries
Other
Total
Results by business area
2019
2018
Change
(14)
590
642
165
107
211
14
145
(18)
209
(2)
209
2
(14)
1,395
22
425
469
142
7
124
51
145
(6)
233
-
233
-
(26)
1,117
(36)
165
173
23
100
87
(37)
-
(12)
(24)
(2)
(24)
2
12
278
-
38.8%
36.9%
16.2%
-
70.2%
-72.5%
-
-
-10.3%
-
-10.3%
-
46.2%
24.9%
117
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The increase in the gross operating margin in 2019 is mainly
that underwent impairment testing, totaling €103 mil-
due to:
lion, because their value was deemed non-recoverable
> an increase of €173 million in the margin in Latin America,
through operations;
mainly attributable to the indemnity in the amount of €80
− deterioration of €90 million in the results on commodity
million received from a major customer for having exerci-
contracts measured at fair value;
sed the withdrawal option in advance and to the improve-
> decrease of €36 million in the margin in Italy, mainly due to:
ment in the margin of the Fortaleza plant (€108 million) due
− an increase in writedowns of fuel, consumables, and
to a decrease in provisioning costs;
spare parts inventories at a number of coal-fired plants,
> an increase of €165 million in Iberia, essentially attributable
totaling €205 million, because their value was deemed
to the following factors:
non-recoverable through operations;
− an increase of €279 million in the margin on nuclear ge-
− recognition of a gain of €108 million by Enel Produzione
neration, mainly due to an increase in volumes gene-
on the disposal of the Mercure power plant, which was
rated and in prices, as well as a reduction in taxes on
only partially offset by an increase in provisions for en-
nuclear generation (€43 million);
vironmental costs in accordance with the contract and
− a reduction of €63 million in taxes and duties on ther-
related to the industrial site;
mal generation due, above all, to suspension of taxes on
− a decrease of €65 million in costs for environmental
power generation and on the consumption of hydrocar-
compliance in thermal generation;
bons used to generate power in accordance with Royal
> a decrease of €24 million in the margin posted for Euro-
Decree no. 15/2018 of October 5, 2018;
pe and Euro-Mediterranean Affairs, recognized mainly in
− an increase in writedowns of fuel, consumables and
Russia.
spare parts inventories at a number of coal-fired plants
Operating income
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe and Euro-Mediterranean Affairs
- of which Romania
- of which Russia
- of which other countries
Other
Eliminations and adjustments
Total
2019
(1,908)
(1,650)
68
100
94
(233)
(2)
109
(19)
30
(1)
31
-
(15)
-
2018
(248)
(274)
266
89
(1)
30
37
111
(6)
170
-
170
-
(26)
-
Change
(1,660)
(1,376)
(198)
11
95
(263)
(39)
(2)
(13)
(140)
(1)
(139)
-
11
-
(3,494)
(118)
(3,376)
-
-
-74.4%
12.4%
-
-
-
-1.8%
-
-82.4%
-
-81.8%
-
42.3%
-
-
The decrease in operating income is due to the increase of
> impairment in Italy, Spain, Chile and Russia for coal-fired
€3,654 million in depreciation, amortization and impairment,
plants totaling €4,010 million, as described in detail in the
despite the improvement in the gross operating margin. More
“Operating income” section of “Group performance”;
specifically, the increase in depreciation, amortization and im-
> an increase in depreciation and amortization in application
pairment mainly concerned:
of IFRS 16 (€34 million).
118
Consolidated Annual Report 2019 Capital expenditure
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Other
Total
2019
189
388
193
79
2
851
2018
172
345
251
70
1
839
Change
17
43
(58)
9
1
12
9.9%
12.5%
-23.1%
12.9%
-
1.4%
The increase in capital expenditure is mainly attributable to
were partially offset by a decrease of €58 million in capital
Italy (€17 million) and Iberia (€43 million) and concerns, abo-
expenditure in Latin America, particularly in Argentina and
ve all, plant maintenance and safety upgrading. These effects
Chile, regarding coal-fired and combined-cycle plants.
Results by business area
119
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 120
Consolidated Annual Report 2019
Consolidated Annual Report 2019 Enel Green Power
99.4 TWh
Net electricity generation
+20.3% from wind farms
compared to 2018
42.1 GW
Net efficient generation capacity
50% of total Group
generation capacity
€4,604 mln
Gross operating margin
€4,608 million in 2018
+54.2%
Capital expenditure compared
to 2018 for a total of €4,293 million
Operations
Net electricity generation
Millions of kWh
Hydroelectric
Geothermal
Wind
Solar
Other sources
Total net generation
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe and Euro-Mediterranean
Affairs
- of which North America
- of which Africa, Asia and Oceania
2019
62,580
6,148
26,668
3,974
21
99,391
24,308
10,090
48,448
2,005
12,969
1,571
2018
65,893
5,881
22,161
4,897
108
98,940
25,476
12,172
48,137
1,895
9,752
1,508
Change
(3,313)
267
4,507
(923)
(87)
451
(1,168)
(2,082)
311
110
3,217
63
-5.0%
4.5%
20.3%
-18.8%
-80.6%
0.5%
-4.6%
-17.1%
0.6%
5.8%
33.0%
4.2%
Net electricity generation 2019 increased slightly from 2018
ases in wind power generation in Mexico (down 759 million
due to increases in wind and geothermal production, which
kWh) due, in part, to the sale of a number of companies in
were partially offset by decreases in hydroelectric and so-
September 2018.
lar power generation. The most significant changes in wind
The increase in geothermal generation came mainly in the
power came in the United States and in Iberia, where pro-
United States (up 285 million kWh).
duction increased by 4,496 million kWh and 439 million kWh,
The decrease in hydro generation was due mainly to redu-
respectively. These increases were partially offset by decre-
ced water availability in Italy and Iberia, only partially offset
Results by business area
121
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements by an increase in Latin America (up 458 million kWh), where
lion kWh), and Peru (+462 million kWh), and these increases
output varied throughout the region. Of particular note were
were offset by decreases in Argentina (-350 million kWh), Chi-
increases in Brazil (+940 million kWh), Colombia (+857 mil-
le (-899 million kWh), and Panama (-308 million kWh).
Net efficient generation capacity
MW
Hydroelectric
Geothermal
Wind
Solar
Other sources
Total net power efficiency
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe and Euro-Mediterranean Affairs
- of which North America
- of which Africa, Asia and Oceania
at Dec. 31, 2019 at Dec. 31, 2018
Change
27,830
878
10,327
3,094
5
42,134
13,972
7,391
13,676
1,037
5,282
776
27,844
804
8,190
2,322
43
39,203
14,011
6,525
13,869
883
3,220
695
(14)
74
2,137
772
(38)
2,931
(39)
866
(193)
154
2,062
81
-0.1%
9.2%
26.1%
33.2%
-88.4%
7.5%
-0.3%
13.3%
-1.4%
17.4%
64.0%
11.7%
Net power efficiency capacity for 2019 increased from 2018,
solar plants, as well as to an increase in power generation
mainly in the United States due to the acquisition by Enel
capacity at the High Lonesome and Roadrunner plants. Wind
Green Power North America (EPGNA, now named Enel North
and solar power generation capacity also increased in Iberia.
America) of 13 companies that own wind, geothermal and
Performance
Millions of euro
Revenue
Gross operating margin
Operating income
Capital expenditure
(1) The figure does not include €4 million regarding units classified as “held for sale”.
(2) The figure does not include €378 million regarding units classified as “held for sale”.
2019
7,733
4,604
3,276
2018
8,056
4,608
3,505
4,293 (1)
2,784 (2)
Change
(323)
(4)
(229)
1,509
-4.0%
-0.1%
-6.5%
54.2%
122
Consolidated Annual Report 2019 The following tables show a breakdown of performance by country in 2019.
Revenue (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which Panama
- of which other countries
North America
- of which the United States
- of which Mexico
Europe and Euro-Mediterranean Affairs
- of which Romania
- of which Greece
- of which Bulgaria
- of which other countries
Africa, Asia and Oceania
Other
Eliminations and adjustments
Total
2019
1,918
653
3,692
64
694
1,489
1,007
201
169
68
1,115
956
159
271
175
86
8
2
107
105
(128)
7,733
2018
2,084
716
3,843
59
676
1,584
941
334
151
98
860
564
296
255
173
73
9
-
101
316
(119)
8,056
Change
-8.0%
-8.8%
-3.9%
8.5%
2.7%
-6.0%
7.0%
-39.8%
11.9%
-30.6%
29.7%
69.5%
-46.3%
6.3%
1.2%
17.8%
-11.1%
-
5.9%
-66.8%
-7.6%
-4.0%
(166)
(63)
(151)
5
18
(95)
66
(133)
18
(30)
255
392
(137)
16
2
13
(1)
2
6
(211)
(9)
(323)
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guate-
mala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
Results by business area
123
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Gross operating margin (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which Panama
- of which other countries
North America
- of which the United States
- of which Mexico
Europe and Euro-Mediterranean Affairs
- of which Romania
- of which Russia
- of which Greece
- of which Bulgaria
- of which other countries
Africa, Asia and Oceania
Other
Total
2019
1,240
358
2,218
51
335
899
620
162
112
39
737
658
79
112
75
(1)
35
6
(3)
62
2018
1,220
361
2,201
46
395
877
544
156
113
70
538
398
140
115
62
(1)
49
6
(1)
58
Change
20
(3)
17
5
(60)
22
76
6
(1)
(31)
199
260
(61)
(3)
13
-
(14)
-
(2)
4
(123)
4,604
115
4,608
(238)
(4)
1.6%
-0.8%
0.8%
10.9%
-15.2%
2.5%
14.0%
3.8%
-0.9%
-44.3%
37.0%
65.3%
-43.6%
-2.6%
21.0%
-
-28.6%
-
-
6.9%
-
-0.1%
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guate-
mala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
Gross operating margin decreased by €4 million from 2018,
which were partially offset by decreases in such income
which was essentially due to the following:
from Diamond Vista (-€40 million) and Rattlesnake Cre-
> an increase of €199 million in the margin in North America,
ek (-€39 million);
mainly due to:
− a reduction of €61 million in the margin in Mexico due
− an increase of €260 million in the margin the United Sta-
mainly to the change in the scope of consolidation fol-
tes due essentially to the increase (€92 million) related
lowing the sale of eight companies from Project Kino at
to the change in the scope of consolidation following
the end of September 2018;
the acquisition by Enel North America (formerly Enel
> an increase of €17 million in the margin in Latin America,
Green Power North America) of 13 companies sold by
mainly due to:
Enel Green Power North America Renewable Energy
− the increase of €76 million in the margin in Colombia,
Partners LLC (EGPNA REP) and to the negative goodwill
due essentially to an increase in revenue on electricity
on the transaction (€106 million); to the negative goo-
sales (€73 million) as a result of an increase in average
dwill related to the purchase of Tradewind Energy (€75
prices and in quantities traded on the power exchange,
million), which was partially offset by the company’s
and lower costs for electricity purchases and transport
negative margin (-€53 million); to the gains on the di-
(€78 million) related to lower quantities purchased, and to
sposal of the projects Outlaw (€22 million) and Gratiot
a decrease in fuel consumption (€15 million), partially of-
(€20 million); to the increase in tax partnership income
fset by an increase in costs for ancillary services related
related to the companies High Lonesome Wind Power
to the electricity business (€82 million);
(€87 million) and Roadrunner Solar Project (€67 million),
− an increase of €22 million in the margin in Chile, essen-
124
Consolidated Annual Report 2019 tially attributable to recognition of €80 million in penalty
decreases in quantities generated and the change in the
revenue by Enel Generación Chile due to a major indu-
scope of consolidation that took place in Uruguay in De-
strial client exercising the right to early withdrawal from
cember 2018;
a long-term electricity provisioning agreement, partially
> an increase of €20 million in the margin in Italy due essen-
offset by a loss on the electricity margin (€62 million) as a
tially to an increase in the sales price of electricity despite
result of a decrease in production;
the lower volume of hydro generation, partially offset by
− a decrease of €60 million in the margin in Brazil, where
the effect of the recognition in the previous year of the gain
the increase in revenue from electricity sales as a result
on the sale of EF Solare Italia (€65 million);
of greater generation, partly eroded by a reduction in spot
> a reduction of €238 million in the margin that mainly
prices, was more than offset by an increase in costs for
reflected the recognition in the previous year of the gain on
the purchase of electricity and the change in the scope
the sale of eight Project Kino companies in Mexico at the
of consolidation related to the disposal of three plants;
end of September 2018, as well as the fair value measure-
− decrease of €31 million in the margin in other coun-
ment of the Group’s 20% interest in the companies (€190
tries due mainly to a decline in revenue from the sale
million) and the gain on the sale of a number of companies
of electricity in Costa Rica and Guatemala as a result of
in Uruguay (€18 million).
Results by business area
125
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Operating income (1)
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
- of which Panama
- of which other countries
North America
- of which the United States
- of which Mexico
Europe and Euro-Mediterranean Affairs
- of which Romania
- of which Russia
- of which Greece
- of which Bulgaria
- of which other countries
Africa, Asia and Oceania
Other
Eliminations and adjustments
Total
2019
909
183
1,809
38
250
728
560
123
96
14
418
367
51
58
49
-
10
3
(4)
24
(125)
-
3,276
2018
828
208
1,776
39
309
699
488
107
98
36
364
270
94
195
40
(1)
154
3
(1)
19
115
-
3,505
Change
9.8%
-12.0%
1.9%
-2.6%
-19.1%
4.1%
14.8%
15.0%
-2.0%
-61.1%
14.8%
35.9%
-45.7%
-70.3%
22.5%
-
81
(25)
33
(1)
(59)
29
72
16
(2)
(22)
54
97
(43)
(137)
9
1
(144)
-93.5%
-
(3)
5
(240)
-
(229)
-
-
26.3%
-
-
-6.5%
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guate-
mala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
In 2019, operating income, taking account of depreciation,
the start of operations at the Rattlesnake, Hilltopper and Dia-
amortization and impairment losses in the amount of €1,328
mond Vista plants, the impairment losses on the assets of a
million (€1,103 million in 2018), decreased by €229 million
number of wind projects that are no longer viable, and the fair
compared with 2018 due to an increase in depreciation and
value adjustment of hydroelectric projects classified as HFS
amortization in the United States (€116 million) related mainly
(€36 million), as well as the recognition in the previous year of
to the change in the scope of consolidation noted earlier and
the reversal of impairment on the Hellas CGU (€117 million).
126
Consolidated Annual Report 2019 Capital expenditure (1)
Millions of euro
Italy
Iberia
Latin America
North America
Europe and Euro-Mediterranean Affairs
Africa, Asia and Oceania
Other
Total
2019
240
765
1,055 (2)
1,744
189
274
26
2018
252 (3)
246
654
1,322 (4)
139
142
29
(12)
519
401
422
50
132
(3)
4,293
2,784
1,509
Change
-4.8%
-
61.3%
31.9%
36.0%
93.0%
-10.3%
54.2%
(1) These figures have been adjusted for the purposes of comparison with those of December 2019 to take account of the fact that Panama, Costa Rica, Guate-
mala, El Salvador and Nicaragua, which were previously included in the North and Central America geographical area, are now included within Latin America.
(2) The figure does not include €4 million regarding units classified as “held for sale”.
(3) The figure does not include €3 million regarding units classified as “held for sale”.
(4) The figure does not include €375 million regarding units classified as “held for sale”.
Capital expenditure increased by €1,509 million compared
America attributable mainly to wind farms (€274 million)
with the previous year. More specifically, the change is attri-
and photovoltaic plants (€170 million), which was partially
butable to:
offset by a decrease in capital expenditure on hydroelectric
> an increase of €519 million in capital expenditure in Iberia
plants (€90 million). The increase in capital expenditure
attributable mainly to wind farms (€364 million) and photo-
was concentrated in Brazil;
voltaic plants (€153 million);
> an increase of €132 million in capital expenditure in Africa,
> an increase of €422 million in capital expenditure in North
Asia and Oceania related mainly to wind farms (€82 mil-
America, mainly attributable to an increase of €237 million
lion) following an increase in South Africa (€101 million),
in the United States and of €74 million in Mexico for so-
which was partially offset by decreases in capital expendi-
lar plants and to increases in capital expenditure for wind
ture in India (€19 million) and for solar plants (€50 million),
farms (€112 million) following a sharp increase in Mexi-
mainly in Australia (€38 million);
co (€224 million), partially offset by a decrease in capital
> an increase of €50 million in capital expenditure by Europe
expenditure in the United States (€198 million);
and Euro-Mediterranean Affairs, mainly on wind farms in
> an increase of €401 million in capital expenditure in Latin
Russia and Greece.
Results by business area
127
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 128
Consolidated Annual Report 2019
Consolidated Annual Report 2019 Infrastructure and Networks
504 TWh
Electricity transported
on Enel’s network
484 TWh in 2018
€8,278 mln
Gross operating margin
€7,539 million in 2018
€3,905 mln
Capital expenditure
39% of total Group
capital expenditure
Operations
Electricity distribution and transport networks
Millions of kWh
Electricity transported on Enel’s network (1)
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe and Euro-Mediterranean Affairs
End users (no.)
End users with active smart meters (no.)
2019
504,027
224,587
126,454
137,295
15,691
2018
484,377
226,460
124,865
117,412
15,640
73,258,840
72,945,664
44,668,538
43,770,085
Change
19,650
(1,873)
1,589
19,883
51
313,176
898,453
4.1%
-0.8%
1.3%
16.9%
0.3%
0.4%
2.1%
(1) The figure for 2018 reflects a more accurate measurement of amounts transported.
The increase in energy transported on the network is mainly
> Italy (-0.8%), where electricity distributed to end users to-
attributable to:
taled 224.58 TWh, a slight decrease from the previous ye-
> Latin America (+16.9%) following the acquisition of Enel
ar’s figure of 226.46 TWh. This reduction reflects declining
Distribuição São Paulo, a Brazilian electricity distribution
demand among medium-voltage (-1.2 TWh) and high-vol-
company, on June 7, 2018;
tage customers (-1 TWh). Demand was stable among
> Romania (+0.3%), where the increase was mainly due to
low-voltage customers;
new connections of business customers (+21.4 GWh),
> Iberia (+1.3%), where the increase was due essentially to
which was partially offset by a decrease for residential cu-
an increase in electricity transported by Edistribución Re-
stomers (-21.1 GWh);
des Digitales SL.
Results by business area
129
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Average frequency of interruptions per customer
SAIFI (average no.)
2019
2018
Change
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
Average duration of interruptions per customer
SAIDI (average min.)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
1.9
1.4
6.0
5.8
1.6
6.8
2.8
4.1
2019
48.5
75.8
1.8
1.6
6.7
6.2
1.5
9.0
2.8
3.8
2018
47.2
79.5
0.1
(0.2)
(0.7)
(0.4)
0.1
(2.2)
-
0.3
1.3
(3.7)
Change
1,214.1
1,485.4
(271.3)
728.8
184.1
666.6
418.9
169.6
716.8
178.0
710.0
436.0
173.8
12.0
6.1
(43.4)
(17.1)
(4.2)
5.6%
-12.5%
-10.4%
-6.5%
6.7%
-24.4%
-
7.9%
2.8%
-4.7%
-18.3%
1.7%
3.4%
-6.1%
-3.9%
-2.4%
As indicated in the tables, the most significant service inter-
gh-voltage transmission systems not operated by the Group.
ruptions occurred in Argentina, due in particular to faults in hi-
2019
2018
Change
4.7
7.5
15.5
12.8
5.0
7.7
8.2
9.7
4.7
7.5
14.9
12.4
5.0
7.7
7.9
9.8
-
-
0.6
0.4
-
-
0.3
(0.1)
-
-
4.0%
3.2%
-
-
3.8%
-1.0%
Network losses (avg. %)
Italy
Iberia
Argentina
Brazil
Chile
Colombia
Peru
Romania
130
Consolidated Annual Report 2019 Performance
Millions of euro
Revenue
Gross operating margin
Operating income
Capital expenditure
2019
21,789
8,278
5,277
3,905
2018
19,968
7,539
4,787
3,830
The following tables shows a breakdown of performance by country in 2019.
Change
9.1%
9.8%
10.2%
2.0%
Change
1,821
739
490
75
(25)
53
1,758
133
1,317
119
108
81
1
17
17
-0.3%
2.0%
19.0%
12.9%
23.4%
8.8%
20.3%
11.1%
0.3%
39.5%
21.8%
9.1%
6.2%
3.1%
28.1%
56.6%
40.4%
-2.6%
9.6%
21.9%
-29.6%
5.0%
9.8%
131
2019
7,647
2,724
11,033
1,166
6,946
1,467
641
813
386
60
(61)
2018
7,672
2,671
9,275
1,033
5,629
1,348
533
732
385
43
(78)
21,789
19,968
1,821
2019
3,906
2,025
2,259
271
1,144
222
399
223
107
(19)
2018
3,679
1,965
1,763
173
815
228
364
183
152
(20)
8,278
7,539
Change
227
60
496
98
329
(6)
35
40
(45)
1
739
Revenue
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe and Euro-Mediterranean Affairs
Other
Eliminations and adjustments
Total
Gross operating margin
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe and Euro-Mediterranean Affairs
Other
Total
Results by business area
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The gross operating margin increased as a result of:
sonnel costs due essentially to actuarial gains in application
> an increase of €496 million in the margin in Latin America
of Article 4 of Law 92/2012 (€31 million). It should also be
despite the effects of adverse exchange rate developments
noted that, in 2019, e-distribuzione recognized an additional
of €133 million, an increase that is mainly attributable to:
indemnity of €50 million related to the sale of Enel Rete Gas
− in Brazil, the consolidation of Enel Distribuição São Pau-
to F2i, following the indemnity of €128 million recognized
lo (€313 million);
in 2018;
− in Argentina, the Edesur agreement with the govern-
> an increase in the margin in Iberia due mainly to an incre-
ment resolving mutual pending issues arising during the
ase in electricity-transport revenue (€56 million) and a gain
period from 2006 to 2016 in the amount of €209 million.
on the sale of the right to use the fiber-optic network (€24
This increase was partially offset by a reduction in sales
million). These effects were partially offset by a decrease in
revenue following a decrease in quantities transported;
revenue from services provided to third-party end users;
> in increase in the gross operating margin in Italy following
> a decrease in the gross operating margin of Europe and
a reduction in costs for the purchase of energy efficiency
Euro-Mediterranean Affairs due to an increase in costs in
certificates due to both a decrease in purchase prices and
Romania, mainly for personnel (€12 million), services (€12
in volumes purchased (€191 million) and a reduction in per-
million) and electricity purchases (€16 million).
Operating income
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe and Euro-Mediterranean Affairs
Other
Total
2019
2,647
1,288
1,349
240
487
173
292
157
13
(20)
2018
2,508
1,220
1,025
98
362
178
261
126
54
(20)
5,277
4,787
Change
139
68
324
142
125
(5)
31
31
(41)
-
490
5.5%
5.6%
31.6%
-
34.5%
-2.8%
11.9%
24.6%
-75.9%
-
10.2%
The increase in operating income in 2019 was due to the
in Brazil of the writedown of the Funac fund in the amount
increase in gross operating margin, which was only partially
of €96 million, which became necessary after the repeal by
offset by an increase of €249 million in depreciation, amortiza-
the state of Goiás of the obligation to meet the liabilities,
tion and impairment losses. More specifically, the increase in
even if not recognized, resulting from the administrative
depreciation, amortization and impairment mainly concerned:
and judicial dispute of Enel Distribuição Goiás;
> an increase of €172 million in depreciation, amortization
> an increase of €88 million in depreciation, amortization and
and impairment in Latin America, which was essentially
impairment in Italy due to an increase in capital expenditu-
due to the change in the scope of consolidation with the
re and to the application of IFRS 16 (€38 million).
addition of Enel Distribuição São Paulo and the recognition
132
Consolidated Annual Report 2019 Capital expenditure
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Other
Total
2019
1,753
647
1,335
169
1
3,905
2018
1,685
668
1,315
159
3
3,830
Change
68
(21)
20
10
(2)
75
4.0%
-3.1%
1.5%
6.3%
-66.7%
2.0%
The increase in capital expenditure is mainly attributable to:
metering equipment;
> Italy and capital expenditure for low-voltage plants;
> Latin America, and Argentina specifically, in order to impro-
> Iberia and the reduction in capital expenditure for the di-
ve the quality of service provided to users through works
stribution network and for software applications, an effect
aimed at strengthening the low-, medium- and high-volta-
which was partially offset by an increase in capital expendi-
ge networks.
ture for substations, transformers, and the replacement of
Results by business area
133
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 134
Consolidated Annual Report 2019
Consolidated Annual Report 2019 End-user Markets
302 TWh
Electricity sold
295 TWh in 2018
€3,287 mln
Gross operating margin
€3,079 million in 2018
69.9 mln
Retail customers of which
22.8 million free market
Operations
Electricity sales
Millions of kWh
Free market
Regulated market
Total
- of which Italy
- of which Iberia
- of which Latin America
- of which Europe and Euro-Mediterranean Affairs
2019
152,588
149,088
301,676
97,539
89,441
104,962
9,734
2018
152,619
142,813
295,432
104,318
89,639
91,075
10,400
Change
(31)
6,275
6,244
(6,779)
(198)
13,887
(666)
-
4.4%
2.1%
-6.5%
-0.2%
15.2%
-6.4%
This positive performance of electricity sales in 2019 essen-
customers to the free market. This factor is seen as the cau-
tially reflects the increase in quantities sold in Latin America,
se for the reduction in quantities sold in Romania as well. In
mainly in Brazil following the acquisition of Enel Distribuição
Spain, the change was essentially due to reduced consump-
São Paulo. This change was only partially offset by the re-
tion. The Group’s retail customers totaled 69,914,992, of whi-
duction of electricity sold in Italy due to a decrease in sales
ch 22,780,590 on the free market. At December 31, 2018,
on the regulated market following the transfer of 1.8 million
those figures were 71,117,743 and 21,478,721 respectively.
Natural gas sales
Millions of m3
Business to consumer
Business to business
Total
- of which Italy
- of which Iberia
- of which Europe and Euro-Mediterranean Affairs
2019
3,698
6,802
10,500
4,736
5,750
14
2018
3,704
7,474
11,178
4,761
6,409
8
Change
(6)
(672)
(678)
(25)
(659)
6
The reduction in natural gas sales was mainly due to the aforementioned reductions in consumption in Spain.
Results by business area
-0.2%
-9.0%
-6.1%
-0.5%
-10.3%
75.0%
135
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Performance
Millions of euro
Revenue
Gross operating margin
Operating income
Capital expenditure
2019
32,544
3,287
2,163
449
2018
33,771
3,079
1,958
374
Change
(1,227)
208
205
75
-3.6%
6.8%
10.5%
20.1%
The following tables shows a breakdown of performance by country in 2019.
2019
16,042
13,867
1,504
30
398
268
769
39
1,131
-
32,544
2018
16,367
14,920
1,443
6
299
255
848
35
1,040
1
Change
(325)
(1,053)
61
24
99
13
(79)
4
91
(1)
33,771
(1,227)
2019
2,314
715
243
2
149
17
60
15
15
2018
2,233
676
158
(16)
100
19
42
13
12
Change
81
39
85
18
49
(2)
18
2
3
3,287
3,079
208
-2.0%
-7.1%
4.2%
-
33.1%
5.1%
-9.3%
11.4%
8.8%
-
-3.6%
3.6%
5.8%
53.8%
-
49.0%
-10.5%
42.9%
15.4%
25.0%
6.8%
Revenue
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe and Euro-Mediterranean Affairs
Eliminations and adjustments
Total
Gross operating margin
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe and Euro-Mediterranean Affairs
Total
136
Consolidated Annual Report 2019 The increase in the gross operating margin is mainly attri-
ving mutual pending issues arising during the period
butable to:
2006-2016 (€24 million);
> an increase in margins in Latin America due to:
> an increase of €108 million in the margin on the free mar-
− the consolidation of Enel Distribuição São Paulo begin-
ket in Italy, which was only partially offset by a reduction of
ning in June of last year (€51 million);
€27 million on the regulated market;
− an increase in revenue in Argentina following the Ede-
> a decrease in the cost ratio in Iberia.
sur settlement agreement with the government resol-
Operating income
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
Europe and Euro-Mediterranean Affairs
Eliminations and adjustments
Total
2019
1,609
491
77
(35)
44
6
52
10
(14)
-
2018
1,379
494
87
(16)
52
16
29
6
(2)
-
2,163
1,958
Change
16.7%
-0.6%
-11.5%
-
-15.4%
-62.5%
79.3%
66.7%
-
-
10.5%
230
(3)
(10)
(19)
(8)
(10)
23
4
(12)
-
205
In 2019, operating income, including €1,124 million in de-
This positive performance was impacted by the loss recogni-
preciation, amortization and impairment, increased due, abo-
zed in other countries. In Romania, the loss of €14 million
ve all, to performance improvements in Italy, mainly for Enel
reflected an increase in the impairment of trade receivables
Energia following the improvement in margins noted above
compared with 2018.
and the decrease of €149 million in depreciation, amortization
and impairment, which was essentially related to the decrea-
se in allowances for doubtful accounts.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Total
2019
324
110
-
15
449
2018
248
107
1
18
374
Change
30.6%
2.8%
-
-16.7%
20.1%
76
3
(1)
(3)
75
The change in capital expenditure is mainly attributable to
This increase was due to the capitalization of costs related to
the increase in Italy, particularly with regard to Enel Energia.
the acquisition of new customer contracts.
Results by business area
137
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 138
Consolidated Annual Report 2019
Consolidated Annual Report 2019 Enel X
6.3 GW
Demand Response
6.2 GW in 2018
79,565
Charging points
48,967 in 2018
2,424
Lighting points
2,467 in 2018
€158 mln
Gross operating margin
€124 million in 2018
+47.5%
Capital expediture compared to
2018 for a total of €270 million
Operations
Demand Response (MW)
Lighting points (no.)
Storage (MW) (1)
Charging points (no.)
(1) Excluding storage from other sectors.
2019
6,297
2,424
12
2018
6,215
2,467
3
Change
82
(43)
9
79,565
48,967
30,598
1.3%
-1.7%
-
62.5%
In 2019, the Group further developed the charging infrastructure for electric vehicles, particularly in Italy.
Performance
Millions of euro
Revenue
Gross operating margin
Operating income
Capital expenditure
2019
1,130
158
(98)
270
2018
1,006
124
19
183
Change
124
34
(117)
87
12.3%
27.4%
-
47.5%
Results by business area
139
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements The following tables shows a breakdown of performance by country in 2019.
Revenue
Millions of euro
Italy
Iberia
Latin America
- of which Argentina
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe and Euro-Mediterranean Affairs
Africa, Asia and Oceania
Other
Eliminations and adjustments
Total
Gross operating margin
Millions of euro
Italy
Iberia
Latin America
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe and Euro-Mediterranean Affairs
Africa, Asia and Oceania
Other
Total
2019
282
261
186
4
17
81
77
7
328
35
52
66
(80)
1,130
2018
247
247
161
-
15
70
70
6
338
7
-
50
(44)
1,006
Change
35
14
25
4
2
11
7
1
(10)
28
52
16
(36)
124
2019
2018
Change
13
38
64
(1)
26
38
1
80
-
(1)
(36)
158
31
51
56
-
19
37
-
3
3
(4)
(16)
124
(18)
(13)
8
(1)
7
1
1
77
(3)
3
(20)
34
14.2%
5.7%
15.5%
-
13.3%
15.7%
10.0%
16.7%
-3.0%
-
-
32.0%
-81.8%
12.3%
-58.1%
-25.5%
14.3%
-
36.8%
2.7%
-
-
-
75.0%
-
27.4%
The increase in gross operating margin came mainly in North
ly offset by an increase in operating expenses connected with
America as a result of an adjustment to the amount paid for the
structural growth in Italy, Spain and Latin America.
purchase of eMotorWerks (€98 million) in application of certain
clauses of the related contract. These effects were only partial-
140
Consolidated Annual Report 2019 Operating income
Millions of euro
Italy
Iberia
Latin America
- of which Brazil
- of which Chile
- of which Colombia
- of which Peru
North America
Europe and Euro-Mediterranean Affairs
Africa, Asia and Oceania
Other
Total
2019
(45)
(13)
58
(4)
24
37
1
(50)
(3)
(5)
(40)
(98)
2018
Change
(9)
37
54
(1)
19
36
-
(31)
2
(8)
(26)
19
(36)
(50)
4
(3)
5
1
1
(19)
(5)
3
(14)
(117)
-
-
7.4%
-
26.3%
2.8%
-
-61.3%
-
37.5%
-53.8%
-
In 2019, operating income decreased despite the improve-
impairment losses. This mainly concerned the impairment of
ment in the gross operating margin, essentially as a result of
intangible assets (€83 million) in respect of obsolete techno-
an increase of €151 million in depreciation, amortization and
logies that are no longer in use.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
North America
Europe and Euro-Mediterranean Affairs
Africa, Asia and Oceania
Other
Total
2019
2018
Change
52
64
40
61
4
1
48
270
54
39
29
38
3
-
20
183
(2)
25
11
23
1
1
28
87
-3.7%
64.1%
37.9%
60.5%
33.3%
-
-
47.5%
Capital expenditure increased in Spain, the United States
support new business initiatives (demand response, charging
and Italy due to the purchase of new software licenses to
systems, e-mobility, public lighting).
Results by business area
141
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 142
Consolidated Annual Report 2019
Consolidated Annual Report 2019 Services and Other
Performance
Millions of euro
Revenue
Gross operating margin
Operating income
Capital expenditure
The tables below show performance by geographic area in 2019.
Revenue
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Other
Eliminations and adjustments
Total
Gross operating margin
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Other
Total
2019
2,229
(18)
(246)
179
2019
1,359
597
27
28
291
(73)
2018
2,140
(116)
(251)
142
2018
1,389
514
35
22
231
(51)
2,229
2,140
2019
169
66
(123)
5
(135)
(18)
2018
119
80
(104)
1
(212)
(116)
Change
89
98
5
37
4.2%
84.5%
2.0%
26.1%
Change
Change
-2.2%
16.1%
-22.9%
27.3%
26.0%
-43.1%
4.2%
42.0%
-17.5%
-18.3%
-
36.3%
-84.5%
(30)
83
(8)
6
60
(22)
89
50
(14)
(19)
4
77
98
The increase in gross operating margin for 2019 is due to:
to the increase in services provided by the holding com-
> an increase of €50 million in the margin in Italy, the result
pany to the other Business Lines of the Group and to a de-
mainly of a reduction in costs for leases and rents due to
crease in costs for reversal of the provision related to the
application of IFRS 16 and their consequent inclusion in the
closing of an Enel SpA arbitration in Romania (€13 million).
value of right-of-use assets;
> an increase in the margin on the “Other” segment related
Results by business area
143
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Operating income
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Other
Total
2019
17
19
(122)
3
(163)
(246)
2018
39
39
(105)
-
(224)
(251)
Change
(22)
(20)
(17)
3
61
5
-56.4%
-51.3%
-16.2%
-
27.2%
-2.0%
The operating loss in 2019 improved by €5 million, after an
of €93 million, which mainly reflected the depreciation of ri-
increase in depreciation, amortization and impairment losses
ght-of-use assets following application of the new IFRS 16.
Capital expenditure
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
Other
Total
2019
2018
Change
78
46
9
1
45
179
68
28
9
1
36
142
10
18
-
-
9
37
14.7%
64.3%
-
-
25.0%
26.1%
The increase in capital expenditure in 2019 can be attributed to increases in Italy and Spain.
144
Consolidated Annual Report 2019 Significant events in 2019
Issue of new €1 billion green bond in Europe
On January 14, 2019, Enel Finance International NV placed its
to a total of €1,000 million and provides for repayment in a
third green bond on the European market. The issue amounts
single instalment at maturity on July 21, 2025.
Funac
With Law 20.416 of February 5, 2019, the state of Goiás re-
a legal and contractual basis and that, therefore, the actions
duced from January 27, 2015 to April 24, 2012 the period of
that the state of Goiás has taken in order to fully suspend the
operation of the Funac fund and the tax benefit system that
application of these laws are patently unfounded. On April 26,
allowed Celg Distribuição SA - Celg-D (now Enel Distribuição
2019, Law no. 20.468 was promulgated. With the law, the
Goiás) to offset ICMS (tax on the circulation of goods and ser-
state of Goiás revoked the tax relief referred to above in its
vices, similar to VAT) against the tax credit for Celg-D invest-
entirety. On May 5, 2019, Celg-D filed a petition and a request
ments to develop and maintain its grid. On February 25, 2019,
for a precautionary suspension against the state of Goiás to
Celg-D appealed the provisions of Law no. 20.416 of February
contest this law. On September 16, 2019, the Court of the sta-
5, 2019 on a precautionary basis (“writ of mandamus”) before
te of Goiás denied the petition for precautionary relief, uphol-
the Court of the state of Goiás, which denied the appeal on
ding the repeal of the tax benefit of the ICMS. On September
February 26, 2019. Celg-D appealed this ruling and the Court
26, 2019, Celg-D filed an appeal against the decision denying
of the state of Goiás allowed the appeal on June 11, 2019. On
the precautionary suspension, claiming that the repeal of the
October 1, 2019, the Court of the state of Goiás issued an
tax credit law is unconstitutional to the extent that these cre-
order revoking the precautionary measure previously granted
dits were established in accordance with applicable law and
in favor of Celg-D. Celg-D filed an appeal against this deci-
constitute acquired rights.
sion, claiming that the right to guarantee tax credits has both
Amendment of regulatory framework
for hydroelectric concessions
The changes introduced with Decree Law 135 of December
demnities for outgoing concessionaires. These rules will be
14, 2018 (the “Simplification Decree”), ratified into law in Fe-
completed with implementing provisions to be enacted by
bruary 2019, included the amendment of the criteria for the
the regions and the competent authorities.
reassignment and extension of concessions and possible in-
Disposal of 100% of Mercure Srl
On March 1, 2019, the sale of 100% of Mercure Srl was finali-
ly adjusted to €168 million, corresponding to the valuation of
zed with the receipt of a provisional €162 million, subsequent-
the business unit at the reference date of January 1, 2018.
Significant events in 2019
145
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Acquisition of 650 MW of renewables
capacity from its North American joint
venture EGPNA REP
On March 14, 2019, Enel Green Power North America Inc.
America Renewable Energy Partners LLC, an equally owned
finalized the acquisition of 100% of seven renewable gene-
joint venture. The total paid for the transaction amounted to
ration plants totaling 650 MW from Enel Green Power North
$256 million, for an enterprise value equal to $900 million.
Acquisition of Tradewind, a US renewables
development company
On March 26, 2019, Enel Green Power acquired Tradewind
in the United States. The agreement also envisaged the sale
Energy, a renewables project development company, which
of Savion, a subsidiary of Tradewind, to the Green Investment
includes 13 GW of wind, solar and storage projects located
Group.
Increase in stake in Enel Américas
In April 2019, Enel SpA increased its stake in its Chilean sub-
share capital from its current 56.8%.
sidiary Enel Américas to 56.8% from 51.8% following the
On September 3, 2019, Enel SpA successfully completed a
settlement of two share swap transactions entered into in
capital increase at its Chilean subsidiary Enel Américas SA in
October 2018 with a financial institution to acquire up to 5%
the total amount of $3 billion. Enel increased its stake in Enel
of the share capital of Enel Américas.
Américas to 57.26% from its previous holding of 56.8%.
On June 28, 2019. Enel SpA entered into two share swap
At December 31, 2019, Enel held a total interest of 59.97%
contracts with a financial institution to increase its interest in
in Enel Américas.
its listed Chilean subsidiary Enel Américas SA by up to 5% of
Enel refinances hybrid bonds
On May 15, 2019, Enel successfully launched a euro-deno-
the form of a subordinated hybrid security with a maturity of
minated non-convertible bond on the European market in
about six years, amounting to €300 million.
Resolution of outstanding regulatory issues
in Argentina has positive impact for the Enel
Group
On May 17, 2019, Edesur signed two agreements with the
operate within a stable and fully defined framework, with a
Argentine government that enabled the settlement of a num-
significant positive impact on EBITDA.
ber of pending regulatory issues, allowing the Enel Group to
Sale of 540 MW of renewables capacity in Brazil
On May 31, 2019, Enel Green Power Brasil Participações Ltda
ternational Holdings Co. Limited for R$2.9 billion, equivalent
closed the sale of 100% of three operational renewables plan-
to about €660 million.
ts totaling 540 MW to the Chinese company CGN Energy In-
146
Consolidated Annual Report 2019 Gradual halt of coal-fired generation in Chile
On June 4, 2019, Enel Generación Chile and GasAtacama Chi-
ruption of generation at the Tarapacá, Bocamina I and Bocami-
le, members of the Enel Chile Group, signed an agreement
na II coal-fired plants.
with the Ministry of Energy governing the progressive inter-
Placement of first “General Purpose SDG
Linked Bond” in the world
On September 6, 2019, Enel Finance International NV placed
stors on the US and international markets. The bond totaled
a single-tranche “sustainable” bond for US institutional inve-
$1.5 billion, equal to about €1.4 billion.
Brindisi plant - Ash dispute
With regard to the criminal investigation initiated by the Public
ash produced by the thermoelectric plant and the possibility of
Prosecutor’s Office of the Court of Lecce in 2017 concerning
using that ash in the production of cement.
the use of fly ash, in the cement industry, on August 1, 2018,
With a notice communicated on June 7, 2019, the Lecce Public
the Lecce Public Prosecutor lifted its seizure of the plant, with
Prosecutor announced the completion of the preliminary inve-
the termination of the judicial custody/administration of the fa-
stigation (pursuant to Article 415-bis of the Code of Criminal
cility and the restitution of about €523 million to Enel Produzio-
Procedure) in relation to the criminal proceedings in question.
ne. However, the preliminary investigation is continuing both
On July 1, 2019, the brief pursuant to Article 415-bis of the
against the accused individuals and the company pursuant to
Code of Civil Procedure was filed jointly by all the defendants,
Legislative Decree 231/2001. On October 10, 2018, the Defi-
requesting that the case against the defendants and the com-
nitive Technical Report was filed. On December 6, 2018, the
pany be dismissed, given the clear conclusions of the expert
investigating magistrate of the Court of Lecce, at the request
testimony, which fully confirmed the appropriateness of the
of the Public Prosecutor, scheduled a hearing for January 22,
ash management process adopted at the Brindisi plant.
2019, to receive testimony from the experts on the report. The
On January 9, 2020, the original notices of the preliminary he-
investigating magistrate then postponed the hearing until April
aring set for January 29, 2020 were received. Due to a number
15, 2019. Following this hearing, the experts reiterated the ac-
of irregularities in the notices, the hearing was postponed until
curacy of the assessment and the non-hazardous nature of the
April 8, 2020.
Halt of generation at coal-fired plants
in Iberia
On September 27, 2019, Endesa SA decided to promote the
sites, in compliance with the procedures set out in applicable
interruption of generation by the coal-fired plants owned by
regulations.
Endesa in Iberia and to assess future options for the related
Sale of Reftinskaya GRES coal-fired plant
in Russia
On October 1, 2019, Enel SpA announced that Enel Russia
plant to JSC Kuzbassenergo, owned by Siberian Generating
had transferred ownership of the Reftinskaya GRES coal-fired
Company.
Significant events in 2019
147
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Placement of first “General Purpose SDG
Linked Bond” on the European market
On October 10, 2019, Enel Finance International NV launched
ked to the achievement of the United Nations Sustainable De-
a multi-tranche “sustainable” bond for institutional investors
velopment Goals (SDGs) and is the Enel Group’s first “General
on the European market totaling €2.5 billion. The bond is lin-
Purpose SDG Linked Bond” issued on the European market.
Agreement for acquisition of 55%
of PayTipperr
On November 14, 2019, Enel X reached an accord to acquire 55% of PayTipper, a payment institution with agreements with
an extensive network of sales outlets.
Increase in stake in Enel Chile by up to 3%
On December 5, 2019, Enel SpA entered into two share swap
in its listed Chilean subsidiary Enel Chile SA by up to 3% from
agreements with a financial institution to increase its interest
the current holding of 61.9%.
Early redemption of hybrid bond
On December 5, 2019, Enel SpA exercised its early call option
in accordance with the terms and conditions envisaged in the
for the listed hybrid bond issued on January 15, 2014 on the
prospectus of January 10, 2014.
Irish Stock Exchange with a nominal value of €1,000 million,
Endesa industrial relations
After a series of meetings of the Comisión Negociadora del V
before the Servicio Interconfederal de Mediación y Arbitraje
Convenio Colectivo de Endesa (Comisión Negociadora) whi-
(SIMA) aimed at resolving the main issues connected with
ch began in October 2017 and continued throughout 2018,
the 5th Endesa Collective Bargaining Agreement.
in view of the impossibility of reaching an agreement, Ende-
Accordingly, the proceeding before the Supreme Court is con-
sa notified the workers and their union representatives that,
tinuing with the three minority unions that had initially initia-
with effect from January 1, 2019, the 4th Endesa Collective
ted the suit together with the larger union.
Bargaining Agreement must be considered terminated in the
In parallel, numerous individual suits have been filed by re-
same way as the “framework guarantee contract” and the
tired staff and ex-employees who had participated in the re-
“agreement on the voluntary suspension or resolution of em-
tirement incentive agreements (AVS) to judicially ascertain
ployment contracts in the period 2013-2018”, applying from
that the termination of the 4th Endesa Collective Bargaining
that date the provisions of general labor law, as well as the
Agreement would not impact them. Currently, the majority
legal criteria established in the matter.
of these proceedings have been suspended or are being su-
In December 2019, the most representative union at Ende-
spended, pending a ruling on the collective issue before the
sa decided to abandon the suit pending before the Supreme
Supreme Court, on whose outcome these proceedings de-
Court to voluntarily participate in an arbitration proceeding
pend.
148
Consolidated Annual Report 2019 Regulatory and rate issues
The European regulatory framework
“Clean Energy for all Europeans”
legislative package
The “Clean Energy for all Europeans” legislative package, pro-
posed by the European Commission in 2016, laid the founda-
tion necessary for achieving greater integration and regionali-
zation of markets for electricity, balancing, flexibility services
and capacity. Following the inter-institutional agreement rea-
ched in 2018, the following regulations and directives com-
pleting the package were published in the Official Journal of
the European Union on June 14, 2019: the Electricity Market
Regulation (2019/943), the ACER Regulation (2019/942), the
Risk Preparedness Regulation (2019/941) and the Electricity
was published in the Official Journal of the European Union on
April 25, 2019 and entered force on May 15, 2019. Regulation
(EU) 2019/1242 setting CO2 emission performance standards
for new heavy-duty vehicles for 2025 and 2030 was published
in the Official Journal of the European Union on July 25, 2019
and entered force on August 14, 2019. Finally, Directive (EU)
2019/1161 on the promotion of clean and energy-efficient road
transport vehicles was published in the Official Journal of the
European Union on July 12, 2019 and entered force on August
1, 2019. While the regulations will be directly applicable fol-
lowing the publication of the text in the Official Journal of the
European Union, the directive will have to be transposed with
specific legislation in the Member States within two years of
Market Directive (2019/944). The measures entered force on
entry into force.
July 4, 2019, with the regulations taking immediate effect,
while the directive must be transposed into the law of the
various EU countries by December 31, 2020.
The new legislation fosters the integration of the different te-
chnologies and the participation of diverse market operators.
It also opens up the possible development of mechanisms
to provide long-term signals to investment in decarbonization
(e.g. auctions, PPAs) and the adequacy of the electricity sy-
stem (the capacity market).
The “Clean Mobility” legislative
package
The “Clean Mobility” legislative package, proposed by the
European Commission in three separate packages between
2017 and 2018, contains a series of legislative proposals and
other initiatives intended to make traffic safer, reduce CO2
emissions and air pollution, support the development of zero-
and low-emission vehicles and the creation of a supply chain
for the production of European batteries. In 2019, following
an inter-institutional agreement reached in 2018, the final legi-
slation completing the package was published in the Official
Journal of the European Union. Regulation (EU) 2019/631 set-
ting CO2 emission performance standards for new passenger
cars and for new light commercial vehicles for 2025 and 2030
Sustainable finance
In December 2019 the European Parliament and the Council
of the European Union reached an agreement on a proposed
regulation on a classification system for sustainable econo-
mic activities (taxonomy), with the aim of enhancing private
and public investments to finance the transition to a climate
neutral and green economy. Formal approval of the regulation
is expected to come in the 1st Quarter of 2020.
Also in December 2019, a regulation concerning low-carbon
benchmarks and positive carbon impact benchmarks was
formally approved (amending the previous Regulation (EU)
2016/1011).
The two regulations are part of a sustainable finance packa-
ge, which also includes a proposal for a regulation on disclo-
sures relating to sustainable investment and sustainability
risks, amending Directive (EU) 2016/2341 (IORPs), and the
establishment of a European green bond standard to increa-
se transparency and comparability in this market, in support
of sustainable finance.
Regulatory and rate issues
149
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements “European Green Deal”
Communication
On December 11, 2019, the European Commission presen-
ted the “European Green Deal” (EGD). The communication
outlines a series of initiatives aimed at enabling European citi-
zens and businesses to benefit from a green and sustainable
transition. It is an integral part of the European Commission’s
strategy to implement the United Nations’ 2030 agenda for
sustainable development. The European Green Deal includes
initiatives on climate, environment, industrial strategy, green
finance, financing, sustainability and society and legislative
proposals that will be presented in 2020 and 2021.
> The Commission will propose the first European ‘Climate
Law’ by March 2020, aimed at reflecting greater climate
ambition and enshrining the 2050 European climate neu-
trality objective in legislation.
> An assessment of measures to increase the EU’s gre-
enhouse gas emission reductions target for 2030 to at le-
ast 50% and towards 55% (replacing the current reduction
target of 40%) is also envisaged. To this end, the Europe-
an Commission will launch a review of all relevant clima-
te-related policy instruments in order to align them with
the new climate targets. This will comprise the Emissions
Trading System (ETS) and the possibility of extending it to
new sectors, the Energy Taxation Directive and the intro-
duction of a “carbon border adjustment mechanism” for
specific sectors aimed at reducing the risk of “carbon lea-
kage” and preserving the competitiveness of EU industry.
> The update of the national energy and climate plans envi-
saged in 2023 will be assessed with a view to increasing
climate ambitions and supporting renewable energy. In ad-
dition, a process will be launched to review the legislative
dossiers relating to energy and the development of energy
infrastructures.
> During 2020, initiatives will be proposed to support offsho-
re wind and the smart integration of various sectors.
> A new industrial strategy aimed at achieving the climate
neutrality objective and an action plan for the circular eco-
nomy are expected in March 2020. Furthermore, support
for IPCEIs, large alliances and new forms of cooperation
with industry and support for investments in strategic va-
lue chains will be strengthened.
> In 2020, a strategy for sustainable and intelligent mobility
will be presented aimed at making transport more efficient
and cleaner. In addition, the Commission will propose the
phasing out of fossil fuel subsidies, the extension of the
ETS to the maritime sector, the revision of TEN-T and the
Alternative Fuels Infrastructure Directive and the revision
of the regulations concerning pollution and greenhouse
gas emissions for internal combustion vehicles.
> A new initiative will be presented aimed at promoting bu-
ilding renovation with the aim of combating both climate
change and energy poverty, and the extension of the ETS
to include emissions from buildings will be considered.
> An action plan to reduce air, water and soil pollution will
be adopted in 2021, including a revision of air quality stan-
dards and measures to address pollution from large indu-
strial plants.
> A proposal will be advanced for a new sustainable invest-
ment plan that includes a “just transition mechanism” and
“just transition fund” aimed at helping vulnerable regions
and sectors that are heavily dependent on fossil fuels and
mobilizing the funds necessary to achieve the objectives of
the European Green Deal.
> The European Investment Bank (EIB) will be transformed
into a “climate bank” by allocating 50% of all lending to
projects aimed at achieving climate objectives.
> Resources in EU funding programs will be reallocated so
that at least 25% of their budgets go to climate-related
projects and activities (30% of the InvestEU Fund).
> By 2021, EU guidelines on state aid, including environmen-
tal and energy aid, will be revised, while support will be
given to national tax reforms designed to increase public
investment by EU countries to achieve the objectives set
out in the European Green Deal.
State aid rules
After the lengthy reform of the rules governing state aid ini-
tiated in 2012, known as “State Aid Modernization”, the Euro-
pean Commission has decided to prolong the validity of the
regulations, communications and guidelines expiring in 2020
until 2021.
At the same time, the Commission began a review process
for state aid rules, which will be completed by the end of
2021.
Last July, the first phase of a public consultation on aid for
environmental protection and energy was completed (Com-
munication 2014/C 200/01 and Section 7 of Regulation (EU)
no. 651/2014). The guidelines involved in the evaluation were
considered effective, however most responses underscored
the need for a revision of state aid rules to ensure consisten-
cy with current technological and economic developments.
150
Consolidated Annual Report 2019 These initiatives, which lie within the exclusive remit of the
defined state aid as an essential component of the effective
European Commission, fall within the more general fra-
development of policies to achieve climate neutrality by 2050.
mework of the European Green Deal and the EU’s ambitious
State aid is an instrument to mobilize additional national re-
decarbonization objectives. The Commission has repeatedly
sources to support those deployed at the European level.
Regulatory framework by business area
Thermal Generation and Trading
Latin America
Chile
Italy
The essential plants of Assemini and Portoferraio have been
Rate revision - Introduction of the Transitional Electricity
declared eligible for cost reimbursement for 2019 and 2020.
Price Stabilization Mechanism
The Brindisi Sud and Sulcis plants were declared eligible for
On November 2, 2019, Law 21.185 of the Ministry of Ener-
the 2019-2020 period.
gy was published. It introduced a Transitional Electricity Pri-
The Porto Empedocle plant is eligible for long-term cost reim-
ce Stabilization Mechanism for customers on the regulated
bursement until 2025.
market. Consequently, the prices to be charged to regulated
For 2019 and 2020, the remaining part of essential capacity
customers in the 2nd Half of 2019 were set at the level of
was contracted under alternative contracts which under cur-
those applied in the 1st Half of 2019 (Decree 20T/2018) and
rent regulations require the supply of capacity to the ancillary
were defined as “Stabilized Prices for Regulated Customers”
services market for a fixed premium.
(PEC).
In 2019, the Regulatory Authority for Energy, Networks and
Between January 1, 2021 and the termination of this mecha-
the Environment (ARERA) adopted a series of measures re-
nism, the prices charged will be those set every six months
garding the reimbursement of costs to essential plants. More
on the basis of Article 158 of the Electricity Act and cannot
specifically, they regarded:
exceed the PEC adjusted for consumer price inflation.
> the final adjustment for 2016 for the Assemini and Porto-
Any differences between the amount billed in application of
ferraio plants;
the stabilization mechanism and the theoretical bill determi-
> payments on account for 2018 for the Brindisi Sud, Asse-
ned on the basis of considering the price that would have
mini, Porto Empedocle and Portoferraio plants;
been applied under the terms of contracts with the various
> payments on account for 2019 for the Brindisi Sud, Asse-
electricity distribution companies will be recognized by gene-
mini, Porto Empedocle and Sulcis plants.
rators as receivables for invoices to be issued, up to an overall
On June 28, 2019, the Minister for Economic Development
be recognized in US dollars and will not accrue interest until
issued a decree approving the definitive rules governing the
the end of 2025. Any imbalances in favor of the generation
capacity remuneration mechanism (the capacity market). On
companies will have to be recovered no later than December
maximum of $1,350 million until 2023. These differences will
November 6 and November 28, 2019 two auctions were held
31, 2027.
with delivery in 2022 and 2023 respectively: Enel was awar-
ded capacity for both years. Some operators and a sectoral
Enel Green Power
trade association contested the decree and the results of the
two auctions. A decision is pending before the Lombardy Re-
gional Administrative Court in Milan.
Italy
The Ministerial Decree of July 4, 2019 provided for competi-
tive procedures based on Dutch auctions and registers, de-
ARERA has confirmed the transitional capacity remuneration
pending on the installed capacity and by technology groups,
mechanism (the so-called “capacity payment”) for the years
including photovoltaic systems. In particular, up to September
2020 and 2021, so as to ensure continuity with the new ca-
2021, seven procedures will be held with:
pacity market, which will produce a financial impact starting
> Dutch auctions for plants with a capacity of more than 1 MW;
from 2022.
> registers for plants with a capacity of less than 1 MW.
Regulatory and rate issues
151
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Unlike previous decrees, the Ministerial Decree of July 4,
Resource Plan or IRP). IRP 2019 envisages the withdrawal of
2019 provides for a new method for supporting renewable
11 GW of coal capacity by 2030 (in parallel with 1,500 MW of
sources through two-way contracts for differences under whi-
new coal-fired plants). Furthermore, again by 2030, 6 GW of
ch the successful tenderer returns any positive differences
new solar photovoltaic and 14.4 GW of new wind are planned.
between the zonal price and the auction price.
The Carbon Offset Regulations have been published. They will
These incentive mechanisms will terminate when an indicati-
allow renewable energy plants that meet certain requiremen-
ve cumulative annual cost of the incentives reaches €5.8 bil-
ts to generate emission reduction credits and to sell them to
lion. At November 30, 2019 the indicative annual cumulative
companies subject to the carbon tax.
cost was around €5.0 billion.
Europe and Euro-Mediterranean Affairs
Greece
Last December, Law 4643/2019 was approved, transposing
Australia
The most important political event of the year was the fede-
ral election in May 2019, which saw the re-election of the
conservative Liberal Party, which is in favor of a coal-based
energy policy. The election result led to a slowdown in the re-
European legislation on priority dispatch and liberalizing ac-
newable energy market, with a significant decline in capacity
cess to forms of long-term bilateral contracting for the sale of
under development (-60% compared with the investments
electricity from renewable sources.
recorded in the previous year according to BNEF). The sta-
Also in December, the Ministry of Energy applied to the Euro-
lemate is exacerbated by the complexity and length of con-
pean Commission for extension of the current remuneration
nection and permitting processes.
mechanisms for interruptibility services (Security of Supply
These developments are complicated by the uncertain
Transitional Duty - SSTD and Transitory Flexibility Remunera-
outcome of two procedures (Coordination of Generation and
tion Mechanism - TFRM). Both mechanisms expired at the
Transmission Investment - Post 2025 Market Design for the
end of 2019. The SSTD, which has operated since 2016, is
NEM) currently under way, which could lead to the overall re-
financed by all electricity producers, in particular renewable
definition of the National Electricity Market (NEM). However,
generators, based on revenue. The TFRM is funded by electri-
the draft decisions prepared to date by the competent autho-
city consumers.
rities confirm some of the schemes deemed ineffective by
Greece has approved an ambitious national energy and cli-
most investors (e.g. management of losses on transmission
mate plan, which sets new targets for the development of
networks).
renewable sources equal to 35% of final gross energy consu-
mption and includes a plan for the gradual closure of lignite-fi-
red plants by 2023.
India
Last year saw the re-election of Prime Minister Modi, whi-
During 2019, competitive auctions awarded long-term supply
ch will continue his policy of supporting renewables over the
contracts for approximately 1 TW of wind and photovoltaic
next five years. 12 GW were installed in 2019 alone, bringing
capacity.
Bulgaria
With the amendments of the energy law introduced last May,
renewables capacity in the country to 86 GW.
Various regulatory measures have been introduced to encou-
rage renewables, including a 25-year exemption from tran-
smission costs for wind and solar projects and a the reduction
the incentive mechanism for renewable generation plants
in the corporate tax from 34% to 25%.
with a capacity of between 1 and 4 MW has changed. Star-
ting from January 1, 2019, electricity generated by renewable
plants will be sold through the Bulgarian energy exchange
(IBEX) and will take account of spot electricity prices.
Africa, Asia e Oceania
South Africa
The main event was the publication in October 2019 of the
Infrastructure and Networks
Italy
The rate for the fifth regulatory period (2016-2023) is gover-
ned by ARERA Resolution no. 654/2015/R/eel. This period
lasts eight years and is divided into two sub-periods of four
years each (NPR1 for 2016-2019 and NPR2 for 2020-2023).
new long-term electrical development plan (the Integrated
With regard to the NPR2 period, on December 27, 2019 ARE-
152
Consolidated Annual Report 2019 RA published Resolution no. 568/2019/R/eel, with which it
rate subsidy to be paid to distributors with Resolution no.
updated rates for distribution and metering services in force
529/2019/R/efr.
in the 2020-2023 period, publishing the new integrated texts
(TIT 2020-2023 and TIME 2020-2023), substantially confirming
the pre-existing regulatory framework regarding the return on
Grid Code
ARERA issued Resolution 50/2018/R/eel, which introduces a
capital and depreciation and making only a few changes to the
reimbursement mechanism for non-recoverable receivables
methods for recognizing operating costs.
of distribution companies in respect of the general system
With Resolution no. 639/2018/R/com, ARERA set the value of
charges paid to the Energy and Environmental Services
the WACC for distribution and metering activities, valid for the
Fund (CSEA) and Energy Services Operator (GSE) but not
2019-2021 period, at 5.9%, up 0.3 points compared with the
collected by defaulting sellers whose transport contract has
5.6% in force for 2016-2018.
been terminated. The provision permits the recognition of re-
As for distribution and metering rates, ARERA approved both
ceivables accrued as from January 2016. This resolution was
the definitive reference rates for 2018, calculated by taking
also challenged by a number of operators and a consumer
into account the actual balance sheet data for 2017 (Resolu-
association, but all appeals were denied and the rulings are
tion no. 76/2019/R/eel), and the provisional reference rates for
definitive.
2019 on the basis of the preliminary balance sheet data for
Resolution no. 495/2019/r/eel also provided for the payment
2018 (Resolution no. 117/2019/R/eel). The definitive reference
by March 2020 of default interest on the system charges
rates for 2019 are expected to be published in the early mon-
requested from distribution companies with order of 2018,
ths of 2020.
while, once fully operational, that will be replaced by legal
interest automatically calculated by CSEA.
With regard to service quality, ARERA, with Resolution no.
With Resolution no. 655/2018/R/eel, ARERA intervened to sup-
646/2015/R/eel as amended, established output-based regula-
plement the CADE in order to allow the termination of a tran-
tion for electricity distribution and metering services, including
sport contract even in the event of failure to adjust guarantees
the principles for regulation for 2016-2023 (TIQE 2016-2023).
following changes in turnover/number of customers. This resolu-
With Resolution no. 566/2019/R/eel, ARERA completed the
tion was also challenged by an operator and the judgment is cur-
update of the TIQE for the 2020-2023 semi-period, proposing
rently pending before the Milan Regional Administrative Court.
tools to bridge gaps in quality of service still existing between
In response to traders failing to reinstate enforced guarantees,
the various areas of the country, taking account of the time
or failure to pay transport service fees, e-distribuzione sought to
needed to implement interventions on the grid as well as the
terminate certain transport contracts, with the consequent filing
effects of climate change.
of new suits (additional to those previously filed as a precautio-
With Resolution no. 534/2019/R/eel, ARERA published the list
nary measure to hinder the procedures for enforcing the sure-
of interventions in the 2019-2021 Resilience Plan of e-distri-
ties initiated by e-distribuzione following the non-payment of the
buzione eligible for the bonus-penalty mechanism envisaged
fees invoiced to the traders, all of which were decided in favor of
under the provisions of Resolution no. 668/2019/R/eel, which
e-distribuzione ), with which the traders are contesting the termi-
introduced an incentive mechanism for investments to incre-
nation of the contract and claiming damages. e-distribuzione is
ase the resilience of distribution grids in terms of resistance
participating in the proceedings in order to contest the plaintiffs’
to loads deriving from extreme weather events.
opposing and to request payment, in a counterclaim, where ne-
Energy efficiency - White certificates
With decision no. 2538/2019 published on November 28,
2019, the Lombardy Regional Administrative Court, ruling that
cessary, of its receivable in respect of the traders.
Europe and Euro-Mediterranean Affairs
the Ministry for Economic Development did not have jurisdi-
ction, voided the part of Interministerial Decree of May 10,
Romania
In 2019, the first year of the fourth regulatory cycle, the national
2018 setting the cap on the rate subsidy pertaining to distribu-
regulatory authority ANRE revised the assumptions underlying
tion companies at €250/EEC and, consequently, Resolutions
the calculation of regulated revenue up to the year 2023, adop-
no. 487/2018/R/efr and no. 209/2019/R/efr, with which ARE-
ting a structure closer to the Enel business model. The effects
RA had updated the rules for determining the rate subsidy.
were favorable for distribution activities for the 2019 financial
As a result, ARERA initiated a procedure for amending the
year as well. Furthermore, thanks to a government decision,
Regulatory and rate issues
153
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements the regulated rate of return was increased from 5.66% to 6.9%
bruary 1, 2019, based on consumer price inflation, established
with the aim of increasing investment in grids.
with Resolution SGE 366/2019. It also includes an increase in
Latin America
Brazil
the FNEE, which went from $15.5/MWh to $80/MWh. The
second resolution (26/2019) approved the new distribution ra-
tes, which took effect from the same date (February 1, 2019),
establishing that the increases of February 2019 in the VAD
(Aggregate Distribution Value) will be applicable from March
Rate revision for Enel Distribuição Rio (2019)
1, 2019. The changes reflect the variation of 23.57% in the
The rate revision of Enel Distribuição Rio provisionally appro-
MMC from August 23, 2018 to February 19, 2019, the X factor
ved on March 13, 2018, in accordance with Resolution no.
of -5.42% and the Q factor (investments) of 1.74%.
2.377, was subsequently approved by the regulatory authority
ANEEL on March 12, 2019, resulting in an average increase
for customers of around 9.70%.
This increase applied from March 15, 2019 to March 31, 2019.
End-user Markets
Italy
Extraordinary rate revision for Enel Distribuição Rio (2019)
On March 20, 2019, ANEEL authorized the Cámara de Comer-
cialização de Energia Elétrica (CCEE) to finalize the agreement
Electricity
With Resolution no. 706/2018/R/eel, ARERA updated for
with eight banking groups to bring forward payment of the
2019 the rate component covering the marketing costs of the
CDE-ACR (the so-called “rate deficit”) for September 2019.
operators of the enhanced protection service (RCV) and the
This decision was reflected in the rates applied by Enel Distri-
levels of the PCV fee, which represents the reference price
buição Rio, which increased by 7.59%.
for sellers on the free market. Resolution no. 576/2019/R/eel
These rates apply to the period from April 1, 2019 to March
updated the levels of the RCV and PCV for 2020.
14, 2020.
With Resolution no. 119/2019/R/eel, ARERA introduced me-
asures to enhance the efficiency of managing fraudulent wi-
Rate revision for Enel Distribuição Ceará (2019)
thdrawals of power by end users in the enhanced protection
On April 18, 2019, ANEEL approved the fifth periodic revision
market and amended the existing compensation mechanism
of the rates of Enel Distribuição Ceará, which applied as from
for the amounts not collected in respect of such withdrawals.
April 22, 2019. The average increase was 8.22%.
Servizio Elettrico Nazionale has appealed the resolution and
the related judgment is pending before the Lombardy Regio-
Rate revision for Enel Distribuição São Paulo (2019)
nal Administrative Court in Milan.
On July 2, 2019, ANEEL approved the fifth periodic revision
of the rates of Enel Distribuição São Paulo, which applied as
from April 22, 2019. The new rates produced an average in-
crease of 7.03%.
Gas
With resolution no. 32/2019/R/gas ARERA established the rules for
settling financial items between sellers and end users for the 2010-
The next rate review is expected in four years.
2012 period with regard to the gas commodity for the safeguard
service, in compliance with the Council of State ruling 4825/2016.
Rate revision by Enel Distribuição Goiás (2019)
With Resolution no. 707/2018/R/gas, ARERA updated the QVD
On October 22, 2019, ANEEL approved a new rate revision
component of the financial conditions of the natural gas safeguard
for Enel Distribuição Goiás, which took effect from the same
service for 2019. Resolution no. 577/2019/R/gas updated the QVD
date. The new rates produced an average decrease of 3.90%.
for 2020.
Argentina
Decree Law 162 of December 30, 2019 (the “Milleproroghe” om-
nibus extension act), currently being ratified into law, extended the
date previously set for eliminating price protection mechanisms
Rate revision for Edesur (2019)
in the electricity and gas sectors from July 1, 2020 to January 1,
On February 1, 2019, Resolutions ENRE 24/2019 and 26/2019
2022.
were published in the Official Journal. The first approved the
values of the rate table to be applied with effect from Fe-
154
Consolidated Annual Report 2019 Iberia
Spain
Energy efficiency
Russia
Gas market
The order of Russia’s Federal Antimonopoly Service concer-
ning the indexation of gas rates for the 2nd Half of 2019 and
Law 18/2014 of October 15 containing urgent measures for
the 1st Half of 2020 was published on June 6, 2019. Gas
growth, competition and efficiency created a National Energy
prices for industrial uses in the regions in which Enel power
Efficiency Fund to help achieve energy efficiency objectives.
plants operate increased by 1.4% compared with the 1st Half
The TEC/332/2019 decree of March 20 established that Ende-
of 2019.
sa would be required to make a contribution for 2019 of €29
million to the National Energy Efficiency Fund.
The TEC/1080/2019 decree of October 23 established Ende-
sa’s share of financing of the Bonus Social for 2019 at 36.26%,
compared with the previous 37.15%.
Europe and Euro-Mediterranean Affairs
Romania
Electricity market
Following a government emergency order issued in late
2018, which represented a step backwards in the process
of deregulating the electricity and gas markets in Romania,
customers who had elected to enter the free market were au-
thorized to return to the regulated regime, generating losses
for service providers in the free market. These losses were
caused by the decision of the national regulatory authority
ANRE to not reimburse the total costs incurred to provision
electricity supplied to end users in the regulated regime. This
continued in 2019. At the end of 2019 and throughout 2020,
the national regulatory authority adopted a series of regulated
bilateral wholesale contracts with low-cost generators for the
protected retail segment that will enable recovery of the los-
ses of the past two years.
Ireland
Capacity market
Following the proposal of the capacity market operator, which
was presented in June 2018 and approved by the Irish energy
regulators, as from October 1, 2019, demand response re-
sources were de-rated by 33%, with an adverse impact on
their commercial value.
Regulatory and rate issues
155
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 156
Relazione Finanziaria Annuale 2019 5.
OUTLOOK
REPORT
ON OPERATIONS
Outlook
The 2020-2022 Strategic Plan, presented in November 2019,
ture in support of decarbonization and electrification. The ex-
is founded on a sustainable and fully integrated business
pected contribution to EBITDA growth is about €1.1 billion.
model that the Group has adopted since 2015. It is designed
to enable Enel to seize the opportunities presented by the
energy transition and linked to the global trends that are
sweeping through the energy industry: decarbonization and
electrification. The digitalization of grids and the adoption of
platforms for all customer-related activities will be enablers of
the Group’s strategy, which aims to accelerate the growth of
renewables to offset a reduction in thermal generation. More
specifically, the 2020-2022 Investment Plan envisages that:
> investments in decarbonization will amount to about
Overall, the Group expects to invest €28.7 billion over the
course of the plan, producing forecast EBITDA of €20.1 billion
in 2022. More than 90% of investments will directly impact
three main SDGs: SDG 7 (Affordable and Clean Energy), SDG
9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustai-
nable Cities and Communities), thus contributing to SDG 13
for climate action.
Under our dividend policy, over the plan period Enel will con-
tinue to pay out a dividend equal to the greater of 70% of
consolidated ordinary net income and a guaranteed minimum
€14.4 billion (50% of total capex) and will be aimed at de-
dividend per share, with a compound annual growth rate of
veloping new renewable capacity and gradually replacing
8.6% for the implicit DPS and 7.7% for the minimum DPS.
conventional generation assets. Decarbonization’s contri-
Expectations for 2020 envisage:
bution to EBITDA growth will be equal to €1.4 billion over
> an acceleration of investment in support of industrial
the plan period. Renewable capacity is expected to reach
growth to drive decarbonization, in renewable energy, es-
60% of total capacity in three years, driving the increase in
pecially in Latin America and North America;
the profitability of plant assets and increasing output with
> further progress in the digitalization of distribution grids,
zero CO2 emissions to 68% of the total in 2022. The sharp
acceleration in the growth of renewables will support the
mainly in Italy and Latin America, with the aim of improv-
ing the service quality and increasing grid flexibility and
Group’s pursuit of the goal of achieving total decarboniza-
resilience;
tion of the generation mix by 2050;
> an increase in investment devoted to the electrification
> about €1.2 billion of investment will be dedicated to the
of energy consumption, with the aim of leveraging the
electrification of energy consumption, leveraging the
expansion of the customer base, and to continuous effi-
growth and diversification of the retail customer base and
ciency enhancement, supported by the creation of global
the efficiencies associated with the transfer of activities to
business platforms.
platforms. The expected contribution of these investments
The progress achieved for each of the enabling factors and
to the Group’s EBITDA growth amounts to €0.4 billion;
the fundamental principles of the Strategic Plan enable us to
> some €13 billion will be invested in the factors enabling
confirm our financial targets for 2020. Furthermore, based
the energy transition, infrastructure and ecosystems and
platforms, to improve the quality and resilience of grids
on the key elements set out above, the financial targets un-
derpinning the Group’s 2020-2022 Strategic Plan are outlined
through digitalization and creating services and infrastruc-
below.
158
Consolidated Annual Report 2019 Financial targets
Ordinary EBITDA (€bn)
Net ordinary income (€bn)
Pay-out ratio
Implicit DPS (€/share)
Minimum dividend per share (€)
2019
17.9
4.8
70%
0.328
0.32
2020
18.6
5.4
70%
0.37
0.35
2021
19.4
5.8
70%
0.40
0.37
2022
20.1
6.1
70%
0.42
0.40
CAGR (%) 2019-
2022
+3.9%
+8.3%
-
+8.6%
+7.7%
159
OutlookEnel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Other information
Non-EU subsidiaries
At the date of approval by the Board of Directors of the finan-
Chilean company belonging to Enel Chile); 16) Enel Gen-
cial statements of Enel SpA for 2019 – March 19, 2020 – the
Enel Group meets the “conditions for the listing of shares of
companies with control of over companies established and
regulated under the law of non-EU countries” (hereinafter
“non-EU subsidiaries”) established by CONSOB with Article
15 of the Markets Regulation (approved with Resolution no.
20249 of December 28, 2017).
Specifically, we report that:
> in application of the materiality criteria for the purposes of
consolidation referred to in Article 15, paragraph 2, of the
CONSOB Market Regulation, 32 non-EU subsidiaries of
the Enel Group have been identified to which the rules in
question apply on the basis of the consolidated accounts
of the Enel Group at December 31, 2018;
eración Perú SAA (a Peruvian company belonging to Enel
Américas); 17) Enel Green Power Brasil Participações Ltda
(a Brazilian company belonging to Enel Green Power); 18)
Enel Green Power Chile Ltda (a Chilean company belong-
ing to Enel Chile); 19) Enel Green Power del Sur SpA (a
Chilean company belonging to Enel Chile); 20) Enel Green
Power Diamond Vista Wind Project LLC (a US company
belonging to Enel North America); 21) Enel Green Pow-
er Rattlesnake Creek Wind Project LLC (a US company
belonging to Enel North America); 22) Enel Green Power
RSA (Pty) Ltd (a South African company belonging to Enel
Green Power); 23) Enel Green Power Perú SAC (a Peruvian
company belonging to Enel Green Power); 24) Enel Kan-
sas LLC (a US company belonging to Enel North America);
> they are: 1) Ampla Energia e Serviços SA (a Brazilian com-
25) Enel North America Inc. (formerly Enel Green Power
pany belonging to Enel Américas); 2) Celg Distribuição SA
North America Inc., a US company controlled directly by
- Celg-D (a Brazilian company belonging to Enel Américas);
Enel SpA); 26) Enel Perú SAC (a Peruvian company be-
3) Codensa SA ESP (a Colombian company belonging
longing to Enel Américas); 27) Enel Russia PJSC (a Rus-
to Enel Américas); 4) Companhia Energética do Ceará -
sian company controlled directly by Enel SpA); 28) Enel X
Coelce (a Brazilian company belonging to Enel Américas);
North America Inc. (a US company belonging to Enel X);
5) Eletropaulo Metropolitana Eletricidade de São Paulo
29) Gas Atacama Chile SA (a company merged into Enel
SA (a Brazilian company belonging to Enel Américas); 6)
Generación Chile SA on October 1, 2019); 30) Geotérmica
Emgesa SA ESP (a Colombian company belonging to Enel
del Norte SA (a Chilean company belonging to Enel Chile);
Américas); 7) Empresa Distribuidora Sur SA - Edesur (an
31) Rock Creek Wind Project LLC (a US company belong-
Argentine company belonging to Enel Américas); 8) Enel
ing to Enel North America); 32) Thunder Ranch Wind Proj-
Américas SA (a Chilean company controlled directly by
ect LLC (a US company belonging to Enel North America);
Enel SpA); 9) Enel Brasil SA (a Brazilian company belong-
ing to Enel Américas); 10) Enel Brasil Investimentos Sud-
> the balance sheet and income statement of the above
este SA (a company merged into Eletropaulo Metropoli-
companies included in the reporting package used for
tana Eletricidade de São Paulo SA on November 6, 2019);
the purpose of preparing the 2019 consolidated financial
11) Enel Chile SA (a Chilean company controlled directly
statements of the Enel Group will be made available to
by Enel SpA); 12) Enel Distribución Chile SA (a Chilean
the public by Enel SpA (pursuant to Article 15, paragraph
company belonging to Enel Chile); 13) Enel Distribución
1a) of the Market Regulation) at least 15 days prior to the
Perú SAA (a Peruvian company belonging to Enel Améri-
day scheduled for the Ordinary Shareholders’ Meeting
cas); 14) Enel Fortuna SA (a Panamanian company belong-
called to approve the 2019 financial statements of Enel
ing to Enel Green Power); 15) Enel Generación Chile SA (a
SpA together with the summary statements showing the
160
Consolidated Annual Report 2019 essential data of the latest annual financial statements of
> Enel SpA has verified that the above subsidiaries:
subsidiaries and associated companies (pursuant to the
- provide the auditor of the Parent Company, Enel SpA,
applicable provisions of Article 77, paragraph 2-bis, of the
with information necessary to perform annual and in-
CONSOB Issuers Regulation approved with Resolution
no. 11971 of May 14, 1999);
> the articles of association and composition and powers
of the control bodies from all the above subsidiaries have
been obtained by Enel SpA and are available in updated
form to CONSOB where the latter should request such
information for supervisory purposes (pursuant to Article
15, paragraph 1b) of the Markets Regulation);
terim audits of Enel SpA (pursuant to Article 15, para-
graph 1 (letter c-i) of the Markets Regulation);
- use an administrative and accounting system appro-
priate for regular reporting to the management and
auditor of the Parent Company, Enel SpA, of income
statement, balance sheet and financial data necessary
for preparation of the consolidated financial statements
(pursuant to Article 15, paragraph 1 (letter c-ii) of the
Markets Regulation).
Approval of the financial statements
The Shareholders’ Meeting called to approve the financial
days from the close of the financial year, permitted under Ar-
statements, as provided for by Article 9.2 of the Bylaws of
ticle 2364, paragraph 2, of the Italian Civil Code, is justified by
Enel SpA, shall be called within 180 days of the close of the
the fact that the Company is required to prepare consolidated
financial year.
financial statements.
The use of that time limit rather than the ordinary limit of 120
Disclosures on financial instruments
The disclosures on financial instruments required by Article
nagement”, note 33 “Derivatives and hedge accounting” and
2428, paragraph 2, no. 6-bis of the Italian Civil Code are re-
note 34 “Fair value measurement” to the separate financial
ported in note 31 “Financial instruments”, note 32 “Risk ma-
statements of Enel SpA.
Transactions with related parties and disclosures
For more information on transactions with related parties, please see note 49 to the consolidated financial statements.
Own shares
As of December 31, 2019, treasury shares are represented
The Shareholders’ Meeting authorized the Board of Directors
by 1,549,152 ordinary shares of Enel SpA with a par value of
to purchase treasury shares in order to pursue the purposes
€1.00 each, purchased through a qualified intermediary for a
of the 2019 LTI Plan.
total value of €10 million.
Other information
161
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Atypical or unusual operations
Pursuant to the CONSOB Notice of July 28, 2006, Enel did
for calculating the transfer price or timing could give rise to
not carry out any atypical or unusual operations in 2019.
doubts concerning the propriety and/or completeness of di-
Such operations include transactions whose significance,
sclosure, conflicts of interest, preservation of company as-
size, nature of the counterparties, subject matter, method
sets or protection of minority shareholders.
Subsequent events
Significant events following the close of the year are discussed in note 54 to the consolidated financial statements.
Reconciliation of shareholders’ equity and net
income of Enel SpA and the corresponding
consolidated figures
Pursuant to CONSOB Notice no. DEM/6064293 of July 28,
results for the year and shareholders’ equity with the corre-
2006, the following table provides a reconciliation of Group
sponding figures for the Parent Company.
Millions of euro
Income statement
Shareholders’
equity
Income statement
Shareholders’
equity
Financial statements - Enel SpA
Carrying amount and impairment adjustments of
consolidated equity investments
Shareholders’ equity and net income (calculated using
harmonized accounting policies) of the consolidated
companies and groups and those accounted for using
the equity method, net of non-controlling interests
Translation reserve
Goodwill
Intercompany dividends
Elimination of unrealized intercompany profits, net of
tax effects and other minor adjustments
TOTAL SHAREHOLDERS OF THE PARENT
COMPANY
NON-CONTROLLING INTERESTS
CONSOLIDATED FINANCIAL STATEMENTS
at Dec. 31, 2019
at Dec. 31, 2018
4,792
211
29,586
(82,098)
3,456
(548)
27,943
(78,109)
4,428
75,304
7,263
73,975
-
(27)
(7,160)
(70)
2,174
1,302
3,476
(3,802)
14,241
-
(2,854)
30,377
16,561
46,938
-
(3)
(4,836)
(543)
4,789
1,561
6,350
(3,317)
14,273
-
(3,045)
31,720
16,132
47,852
162
Consolidated Annual Report 2019 Other information
163
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements 164
Relazione Finanziaria Annuale 2019 6.
CONSOLIDATED
FINANCIAL
STATEMENTS
165
Xxxxxxxxx Xxxxxxxxxxx Consolidated financial statements
Consolidated Income Statement
Millions of euro
Notes
2019
2018
of which with
related parties
of which with
related parties
5,387
38
7,737
2,644
272
10
59
55
Revenue
Revenue from sales and services (1)
Other income
Costs
Electricity, gas and fuel purchases (1)
Services and other materials (1)
Personnel
Net impairment/(reversals) of trade receivables and other receivables
Depreciation, amortization and other impairment losses
Other operating expenses (1)
Capitalized costs
Net income/(expense) from commodity risk management (1)
Operating income
Financial income from derivatives
Other financial income
Financial expense from derivatives
Other financial expense
Net income/(expense) from hyperinflation
Share of income/(losses) of equity investments accounted for using the
equity method
Income before taxes
Income taxes
Net income from continuing operations
Net income from discontinued operations
Net income for the year (shareholders of the Parent Company and non
controlling-interests)
Attributable to shareholders of the Parent Company
Attributable to non-controlling interests
Basic earnings/(loss) per share attributable to shareholders of the Parent
Company (euro)
Diluted earnings/(loss) per share attributable to shareholders of the Parent
Company (euro)
Basic earnings/(loss) per share from continuing operations attributable to
shareholders of the Parent Company (euro)
Diluted earnings/(loss) per share from continuing operations attributable to
shareholders of the Parent Company (euro)
8.a
8.b
[Subtotal]
9.a
9.b
9.c
9.d
9.e
9.f
9.g
[Subtotal]
10
11
12
11
12
13
14
77,366
2,961
80,327
33,755
18,580
4,634
1,144
9,682
7,276
(2,355)
72,716
(733)
6,878
1,484
1,637
1,142
4,518
95
(122)
4,312
836
3,476
-
3,476
2,174
1,302
0.21
0.21
0.21
0.21
4,804
73,037
16
2,538
75,575
7,189
2,617
235
11
88
46
37,264
18,406
4,581
1,096
5,355
1,769
(2,264)
66,207
532
9,900
1,993
1,715
1,532
4,392
168
349
8,201
1,851
6,350
-
6,350
4,789
1,561
0.47
0.47
0.47
0.47
(1) The 2018 figures have been represented to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) con-
tained in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales
contracts for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
166
Consolidated Annual Report 2019 Statement of Consolidated Comprehensive
Income
Millions of euro
Notes
Net income for the period
Other comprehensive income recyclable to profit or loss (net of taxes)
Effective portion of change in fair value of cash flow hedges
Change in fair value of hedging costs
Share of the other comprehensive income of equity investments accounted for using
the equity method
Change in fair value of financial assets at FVOCI
Change in translation reserve
Other comprehensive income not recyclable to profit or loss (net of taxes)
Remeasurement of net liabilities/(assets) for employee benefits
Change in fair value of equity investments in other entities
Total other comprehensive income/(loss) for the period
34
Total comprehensive income/(loss) for the period
Attributable to:
- shareholders of the Parent Company
- non-controlling interests
2019
3,476
39
120
(57)
5
(481)
(502)
-
(876)
2,600
1,745
855
2018
6,350
(552)
83
(57)
(3)
(1,287)
(120)
12
(1,924)
4,426
3,667
759
167
Consolidated financial statementsEnel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Consolidated Balance Sheet
at Dec. 31, 2019
at Dec. 31, 2018
of which with
related parties
of which with
related parties
Notes
16
19
20
21
22
23
24
25
26
27
79,809
112
19,089
14,241
9,112
1,682
1,383
487
6,006
2,701
[Total]
134,622
28
29
25
24
30
31
32
[Total]
33
2,531
13,083
166
409
4,065
4,305
3,115
9,029
36,703
101
171,426
76,631
135
19,014
14,273
8,305
2,099
1,005
346
5,769
1,272
128,849
2,818
13,587
135
660
3,914
5,160
2,983
6,630
35,887
688
165,424
15
896
8
27
183
1,085
52
21
165
Millions of euro
ASSETS
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Goodwill
Deferred tax assets
Equity investments accounted for using the equity method
Derivatives
Non-current contract assets
Other non-current financial assets
Other non-current assets
Current assets
Inventories
Trade receivables
Current contract assets
Tax receivables
Derivatives
Other current financial assets
Other current assets
Cash and cash equivalents
Assets classified as held for sale
TOTAL ASSETS
168
Consolidated Annual Report 2019
Millions of euro
Notes
LIABILITIES AND SHAREHOLDERS’ EQUITY
at Dec. 31, 2019
at Dec. 31, 2018
of which with
related parties
of which with
related parties
Equity attributable to shareholders of the Parent
Company
Share capital
Treasury share reserve
Other reserves
Retained earnings/ (loss carried forward)
Non-controlling interests
Total shareholders’ equity
Non-current liabilities
Long-term borrowings
Employee benefits
Provisions for risks and charges (non-current portion)
Deferred tax liabilities
Derivatives
Non-current contract liabilities
Other non-current liabilities
Current liabilities
Short-term borrowings
Current portion of long-term borrowings
Provisions for risks and charges (current portion)
Trade payables
Income tax payable
Derivatives
Current contract liabilities
Other current financial liabilities
Other current liabilities
Liabilities included in disposal groups classified as held
for sale
Total liabilities
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
10,167
(1)
1,130
19,081
30,377
16,561
46,938
54,174
3,771
5,324
8,314
2,407
6,301
3,706
[Total]
34
35
36
37
22
24
25
38
[Total]
83,997
35
35
37
39
24
25
40
42
[Total]
33
3,917
3,409
1,196
12,960
209
3,554
1,328
754
13,161
40,488
3
124,488
171,426
10,167
-
1,700
19,853
31,720
16,132
47,852
715
48,983
804
151
89
2,291
8
39
30
3,187
5,181
8,650
2,609
6,306
1,901
76,817
3,616
3,367
1,312
13,387
333
4,343
1,095
788
12,107
40,348
407
117,572
165,424
86
89
2,924
35
25
69
169
Consolidated financial statementsEnel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements
Statement of Changes in Consolidated
Shareholders’ Equity (note 34)
Share capital and reserves attributable to shareholders of the Parent Company
Share capital
Share
premium
reserve
Treasury
share reserve
Legal reserve
Other
reserves
Reserve from
translation
of financial
statements
in currencies
other than
euro
Reserve from
measurement
of cash flow
hedge financial
instruments
Reserve from
from equity
Reserve from
Reserve
Equity
measurement
Reserve from
investments
remeasurement
Reserve from
from
Retained
attributable
of costs of
measurement
accounted
of net liabilities/
disposal of
acquisitions
earnings
to
Reserve
hedging
of financial
for using
(assets) of
equity interests
of non-
and loss
shareholders
Non-
Total
financial
instruments at
the equity
defined benefit
without loss of
controlling
carried
of the Parent
controlling
shareholders’
instruments
FVOCI
method
control
interests
forward
Company
interests
At December 31, 2017
10,167
7,489
Application of new accounting
standards (IFRS 9 and IFRS 15)
Monetary revaluation (IAS 29)
-
-
-
-
At January 1, 2018 restated
10,167
7,489
Distribution of dividends and interim
dividends
Monetary revaluation (IAS 29)
Transactions in non-controlling
interests
Change in the scope of consolidation
Comprehensive income for the
period
of which:
- other comprehensive income/(loss)
- net income/(loss) for the period
-
-
-
-
-
-
-
-
-
-
-
-
-
-
At December 31, 2018
10,167
7,489
Distribution of dividends
Purchase of treasury shares
Reclassifications
Monetary revaluation (IAS 29)
Transactions in non-controlling
interests
Change in the scope of consolidation
Comprehensive income for the
period
of which:
- other comprehensive income/(loss)
- net income/(loss) for the period
-
-
-
-
-
-
-
-
-
-
(9)
7
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1)
-
-
-
-
-
-
-
2,034
2,262
(2,614)
(1,588)
(5)
(2,398)
(1,163)
21,280
34,795
17,366
-
-
-
-
-
-
348
-
2,034
2,262
(2,614)
(1,240)
(348)
(20)
(5)
(646)
(2,398)
(1,163)
17,785
31,303
17,152
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(94)
(609)
(609)
-
-
-
-
(14)
(491)
(491)
-
2,034
2,262
(3,317)
(1,745)
(258)
16
(63)
(714)
(2,381)
(1,623)
19,853
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(220)
(265)
(265)
-
-
-
-
-
-
41
94
94
-
At December 31, 2019
10,167
7,487
(1)
2,034
2,262
(3,802)
(1,610)
(147)
21
(119)
(1,043)
(2,381)
(1,572)
19,081
30,377
16,561
46,938
(348)
(23)
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
90
90
111
111
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(58)
(58)
(56)
(56)
27
9
9
-
-
-
-
-
-
-
-
-
-
-
5
5
-
plans
(646)
-
-
-
-
-
-
-
-
-
-
-
-
(5)
(63)
(63)
(11)
(318)
(318)
(3,707)
(3,704)
(576)
(4,280)
212
212
362
(2,765)
(2,765)
(1,137)
(3,902)
73
73
143
216
17
(460)
(850)
(1,293)
(443)
(115)
(29)
4,789
3,667
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(7)
61
(3)
-
-
-
-
-
-
-
4,789
(3,050)
104
2,174
2,174
65
759
(802)
1,561
16,132
(1,190)
-
-
170
593
1
855
(447)
1,302
(1,122)
4,789
31,720
(3,050)
(10)
-
104
61
(193)
1,745
(429)
2,174
equity
52,161
574
48,455
(50)
4,426
(1,924)
6,350
47,852
(4,240)
(10)
-
274
654
(192)
2,600
(876)
3,476
170
Consolidated Annual Report 2019 Share capital and reserves attributable to shareholders of the Parent Company
Share capital
reserve
share reserve
Legal reserve
reserves
euro
instruments
Treasury
Other
other than
hedge financial
Share
premium
At December 31, 2017
10,167
7,489
2,034
2,262
(2,614)
(1,588)
Reserve from
translation
of financial
Reserve from
statements
measurement
in currencies
of cash flow
Reserve from
measurement
of costs of
hedging
financial
instruments
Reserve from
measurement
of financial
instruments at
FVOCI
-
(23)
(348)
-
(348)
-
-
-
-
90
90
-
At December 31, 2018
10,167
7,489
2,034
2,262
(3,317)
(1,745)
(258)
-
-
-
-
-
-
111
111
-
(147)
3
-
(20)
-
-
-
27
9
9
-
16
-
-
-
-
-
-
5
5
-
21
At January 1, 2018 restated
10,167
7,489
2,034
2,262
(2,614)
(1,240)
Application of new accounting
standards (IFRS 9 and IFRS 15)
Monetary revaluation (IAS 29)
Distribution of dividends and interim
dividends
Monetary revaluation (IAS 29)
Transactions in non-controlling
interests
Change in the scope of consolidation
Comprehensive income for the
period
of which:
- other comprehensive income/(loss)
- net income/(loss) for the period
Distribution of dividends
Purchase of treasury shares
Reclassifications
Monetary revaluation (IAS 29)
Transactions in non-controlling
interests
Change in the scope of consolidation
Comprehensive income for the
period
of which:
- other comprehensive income/(loss)
- net income/(loss) for the period
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(9)
7
(1)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(94)
(609)
(14)
(491)
(609)
(491)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(220)
(265)
(265)
348
-
-
-
-
-
-
-
-
-
-
41
94
94
-
At December 31, 2019
10,167
7,487
(1)
2,034
2,262
(3,802)
(1,610)
(5)
-
-
(5)
-
-
-
-
(58)
(58)
-
(63)
-
-
-
-
-
-
(56)
(56)
-
(119)
Reserve
from equity
investments
accounted
for using
the equity
method
Reserve from
remeasurement
of net liabilities/
(assets) of
defined benefit
plans
Reserve from
disposal of
equity interests
without loss of
control
Reserve
from
acquisitions
of non-
controlling
interests
Retained
earnings
and loss
carried
forward
Equity
attributable
to
shareholders
of the Parent
Company
Non-
controlling
interests
Total
shareholders’
equity
(646)
(2,398)
(1,163)
21,280
34,795
17,366
52,161
-
-
-
-
-
-
(646)
(2,398)
(1,163)
17,785
31,303
17,152
212
212
362
574
48,455
(3,707)
(3,704)
(576)
(4,280)
(2,765)
(2,765)
(1,137)
(3,902)
73
143
216
-
-
-
(5)
(63)
(63)
-
(714)
-
-
-
-
-
(11)
(318)
(318)
-
-
-
-
-
17
(460)
-
-
-
-
-
-
-
-
73
-
(29)
-
4,789
(2,381)
(1,623)
19,853
-
-
-
-
-
-
-
-
-
(3,050)
-
-
104
-
-
2,174
-
2,174
-
(7)
61
(3)
-
-
-
4,789
3,667
(443)
(115)
(1,122)
4,789
31,720
(3,050)
(10)
-
104
61
(193)
1,745
(429)
2,174
(850)
(1,293)
65
759
(802)
1,561
16,132
(1,190)
-
-
170
593
1
855
(447)
1,302
(50)
4,426
(1,924)
6,350
47,852
(4,240)
(10)
-
274
654
(192)
2,600
(876)
3,476
(1,043)
(2,381)
(1,572)
19,081
30,377
16,561
46,938
171
Consolidated financial statementsEnel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Consolidated Statement of Cash Flows
Millions of euro
Notes
2019
2018
of which with
related parties
of which with
related parties
Income before taxes for the period
Adjustments for:
Net impairment/(reversals) of trade receivables and other receivables
Depreciation, amortization and other impairment losses
Financial (income)/expense
Net income of equity investments accounted for using the equity method
Changes in net working capital:
- inventories
- trade receivables
- trade payables
- other contract assets (1)
- other contract liabilities (1)
- other assets/(liabilities)
Accruals to provisions
Utilization of provisions
Interest income and other financial income collected
Interest expense and other financial expense paid
Net (income)/expense from measurement of commodities
Income taxes paid
Capital (gains)/losses
Cash flows from operating activities (A)
Investments in property, plant and equipment
Investments in intangible assets
Investments in non-current contract assets
Investments in entities (or business units) less cash and cash equivalents
acquired
Disposal of entities (or business units) less cash and cash equivalents sold
(Increase)/Decrease in other investing activities
Cash flows from investing/disinvesting activities (B)
Financial debt (new long-term borrowing)
Repayments of financial debt (1)
Other changes in net financial debt (1)
Receipts from disposal of equity investments without loss of control (1)
Payments for acquisitions of equity investments without change of control
and other transactions with non-controlling interests (1)
Purchase of own shares
Dividends and interim dividends paid
Cash flows from financing activities (C)
Impact of exchange rate fluctuations on cash and cash equivalents (D)
Increase/(Decrease) in cash and cash equivalents (A+B+C+D)
Cash and cash equivalents at the beginning of the period (2)
Cash and cash equivalents at the end of the period (3)
9.d
9.e
11-12
13
28
29
39
25
25
11-12
11-12
14
16
20
6
6
43.3
43.3
4,312
1,144
9,682
2,443
123
(273)
318
(877)
(51)
(31)
154
214
515
(1,838)
1,582
(4,235)
(86)
(1,850)
(268)
11,251
(8,236)
(1,023)
(692)
(320)
688
468
(9,115)
8,899
(5,511)
355
-
530
(10)
(3,957)
306
(76)
2,366
6,714
9,080
189
(633)
18
88
(46)
(89)
8,201
1,096
5,355
2,048
(349)
153
(117)
426
734
-
750
(1,640)
449
(1,226)
1,768
(4,342)
(71)
(1,721)
(286)
11,075
(6,908)
(1,351)
(271)
(1,472)
424
(83)
(9,661)
13,424
(12,040)
1,826
2
(1,404)
-
(3,444)
(1,636)
(185)
(407)
7,121
6,714
(253)
559
71
59
(55)
(89)
(1) In order to improve the presentation of these items, they have been broken down to a greater extent than in the past, making it necessary to reclassify the
figures for 2018 in order to ensure the uniformity and comparability of the data with the previous year.
(2) Of which cash and cash equivalents equal to €6,630 million at January 1, 2019 (€7,021 million at January 1, 2018), short-term securities equal to €63 million at
January 1, 2019 (€69 million at January 1, 2018) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €21 million at January 1,
2019 (€31 million at January 1, 2018).
(3) Of which cash and cash equivalents equal to €9,029 million at December 31, 2019 (€6,630 million at December 31, 2018), short-term securities equal to €51
million at December 31, 2019 (€63 million at December 31, 2018) and cash and cash equivalents pertaining to “Assets held for sale” in the amount of €21 million
at December 31, 2018.
172
Consolidated Annual Report 2019 Notes to the financial statements
1. Form and content of the financial
statements
Enel SpA has its registered office in Viale Regina Margherita
The assets and liabilities reported in the consolidated balance
137, Rome, Italy, and since 1999 has been listed on the Milan
sheet are classified on a “current/non-current” basis with sep-
stock exchange. Enel is an energy multinational and is one
arate reporting of assets held for sale and liabilities included
of the world’s leading integrated operators in the electricity
in disposal groups held for sale. Current assets, which include
and gas industries, with a special focus on Europe and South
cash and cash equivalents, are assets that are intended to be
America.
realized, sold or consumed during the normal operating cycle
The consolidated financial statements for the period ended
of the Group or in the 12 months following the balance-sheet
December 31, 2019 comprise the financial statements of
date; current liabilities are liabilities that are expected to be
Enel SpA, its subsidiaries and Group holdings in associates
settled during the normal operating cycle of the Group or
and joint ventures, as well as the Group’s share of the assets,
within the 12 months following the close of the financial year.
liabilities, costs and revenue of joint operations (“the Group”).
The consolidated income statement is classified on the basis
A list of the subsidiaries, associates, joint operations and joint
of the nature of costs, with separate reporting of net income/
ventures included in the scope of consolidation is attached.
(loss) from continuing operations and net income/(loss) from
The consolidated financial statements were approved for pub-
Parent Company and to non-controlling interests.
lication by the Board on March 19, 2020.
The indirect method is used for the consolidated statement
These financial statements have been audited by EY SpA.
of cash flows, with separate reporting of any cash flows by
discontinued operations attributable to shareholders of the
Basis of presentation
operating, investing and financing activities associated with
discontinued operations.
In particular, although the Group does not diverge from the
The consolidated financial statements for the year ended De-
provisions of IAS 7 in the classification of items:
cember 31, 2019 have been prepared in accordance with the
> cash flows from operating activities report cash flows from
international accounting standards (International Accounting
core operations, interest on loans granted and obtained
Standards - IAS and International Financial Reporting Stand-
and dividends received from joint ventures or associates;
ards - IFRS) issued by the International Accounting Standards
> investing/disinvesting activities comprise investments in
Board (IASB), the interpretations of the IFRS Interpretations
property, plant and equipment and intangible assets and dis-
Committee (IFRSIC) and the Standing Interpretations Com-
posals of such assets and contract assets related to service
mittee (SIC), recognized in the European Union pursuant to
concession arrangements. They include, also, the effects of
Regulation 2002/1606/EC and in effect as of the close of the
business combinations in which the Group acquires or loses
year. All of these standards and interpretations are hereinafter
control of companies, as well as other minor investments;
referred to as the “IFRS-EU”.
> cash flows from financing activities include cash flows
The financial statements have also been prepared in conform-
generated by liability management transactions, dividends
ity with measures issued in implementation of Article 9, para-
paid to non-controlling interests by the Parent Company
graph 3, of Legislative Decree 38 of February 28, 2005.
or other consolidated companies and the effects of trans-
The consolidated financial statements consist of the consoli-
actions in non-controlling interests that do not change the
dated income statement, the statement of consolidated com-
status of control of the companies involved;
prehensive income, the consolidated balance sheet, the state-
> a separate item is used to report the impact of exchange
ment of changes in consolidated shareholders’ equity and the
rates on cash and cash equivalents and their impact on
consolidated statement of cash flows and the related notes.
profit or loss is eliminated in full in order to neutralize the
173
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements effect on cash flows from operating activities.
classified as held for sale, which are measured at the lower of
For more information on cash flows as reported in the state-
their carrying amount and fair value less costs to sell.
ment of cash flows, please see the note on “cash flows” in
The consolidated financial statements are presented in euro,
the Report on Operations.
the functional currency of the Parent Company Enel SpA. All
The income statement, the balance sheet and the statement
figures are shown in millions of euro unless stated otherwise.
of cash flows report transactions with related parties, the
The consolidated income statement, the consolidated bal-
definition of which is given in the next section below.
ance sheet and the consolidated statement of cash flows re-
The consolidated financial statements have been prepared
port transactions with related parties, the definition of which
on a going concern basis using the cost method, with the
is given in the paragraph “Accounting policies and measure-
exception of items measured at fair value in accordance with
ment criteria”.
IFRS, as explained in the measurement bases applied to each
The consolidated financial statements provide comparative
individual item, and of non-current assets and disposal groups
information in respect of the previous period.
2. Accounting policies and measurement
criteria
2.1 Use of estimates and
management judgment
Preparing the consolidated financial statements under IF-
Use of estimates
Revenue from contracts with customers
Revenue from supply of electricity and gas to end-users is
RS-EU requires management to take decisions and make
recognized at the time the electricity or gas is delivered and
estimates and assumptions that may impact the value of rev-
includes, in addition to amounts invoiced on the basis of peri-
enue, costs, assets and liabilities and the related disclosures
odic (and pertaining to the year) meter readings or on the vol-
concerning the items involved as well as contingent assets
umes notified by distributors and transporters, an estimate of
and liabilities at the balance-sheet date. The estimates and
the electricity and gas delivered during the period but not yet
management’s judgments are based on previous experience
invoiced that is equal to the difference between the amount
and other factors considered reasonable in the circumstanc-
of electricity and gas delivered to the distribution network
es. They are formulated when the carrying amount of assets
and that invoiced in the period, taking account of any network
and liabilities is not easily determined from other sources. The
losses. Revenue between the date of the last meter reading
actual results may therefore differ from these estimates. The
and the year-end is based on estimates of the daily consump-
estimates and assumptions are periodically revised and the
tion of individual customers, primarily determined on their
effects of any changes are reflected through profit or loss if
historical information, adjusted to reflect the climate factors
they only involve that period. If the revision involves both the
or other matters that may affect the estimated consumption.
current and future periods, the change is recognized in the
For more details on this item of revenue, see note 8.a “Reve-
period in which the revision is made and in the related future
nue from sales and services”.
periods.
In order to enhance understanding of the financial statements,
the following sections examine the main items affected by
Impairment of non-financial assets
When the carrying amount of property, plant and equipment,
the use of estimates and the cases that reflect management
investment property, intangible assets, right-of-use assets
judgments to a significant degree, underscoring the main as-
and goodwill exceeds its recoverable amount, which is the
sumptions used by management in measuring these items in
higher of the fair value less costs of disposal and the value in
compliance with the IFRS-EU. The critical element of such val-
use, the assets are impaired.
uations is the use of assumptions and professional judgments
Such assessments of the recoverable amount of assets are
concerning issues that are by their very nature uncertain.
carried out in accordance with the provisions of IAS 36, as
Changes in the conditions underlying the assumptions and
described in greater detail in note 21 below.
judgments could have a substantial impact on future results.
In order to determine the recoverable amount, the Group gen-
174
Consolidated Annual Report 2019 erally adopts the value in use criterion. Value in use is based
Based on the specific reference market and the regulatory
on the estimated future cash flows generated by the asset in
context of the sector, as well as expectations of recovery after
exam, discounted to their present value using a pre-tax dis-
90 days, for such receivables, the Enel Group mainly applies a
count rate that reflects the current market assessment of the
default definition of 180 days past due to determine expected
time value of money and of the specific risks of the asset.
credit losses, as this is considered an effective indication of a
Future cash flows used to determine value in use are based
significant increase in credit risk. Accordingly, financial assets
on the most recent business plan, approved by the manage-
that are more than 90 days past due are generally not con-
ment, containing forecasts for volumes, revenue, operating
sidered to be in default, except for some specific regulated
costs and investments.
markets.
These projections cover the next five years. Consequently,
For trade receivables and contract assets the Group mainly
cash flows related to subsequent periods are determined
applies a collective approach based on grouping the receiv-
based on a long-term growth rate that does not exceed the
ables into specific clusters, taking into account the specific
average long-term growth rate for the particular sector and
regulatory and business context. Only if the trade receivables
country.
are deemed to be individually significant by management and
The recoverable amount is sensitive to the estimates and
there are specific information about any significant increase in
assumptions used in the calculation of cash flows and the
credit risk, the Group applies an analytical approach.
discount rates applied. Nevertheless, possible changes in the
In case of individual assessment, PD is mainly obtained from
estimation factors on which the calculation of such values is
an external provider.
performed could generate different recoverable values. The
Conversely, for collective assessment, trade receivables are
analysis of each group of non-financial assets is unique and
grouped based on shared credit risk characteristics and past
requires management to use estimates and assumptions
due information, considering a specific definition of default.
considered prudent and reasonable in the specific circum-
stances.
Expected credit losses on financial assets
At the end of each reporting date, the Group recognizes a
Based on each business and local regulatory framework as
well as differences in client portfolios also in terms of risk,
default rates and recovery expectations, specific clusters are
defined.
loss allowance for expected credit losses on trade receivables
The contract assets are considered to have substantially the
and other financial assets measured at amortized cost, debt
same risk characteristics as the trade receivables for the
instruments measured at fair value through other comprehen-
same types of contracts.
sive income, contract assets and all other assets in the scope.
Loss allowances for financial assets are based on assump-
In order to measure the ECL for trade receivables on a collec-
tions about risk of default and on the measurement of expect-
tive basis, as well as for contract assets, the Group considers
ed credit losses. Management uses judgement in making
the following assumptions related to ECL parameters:
these assumptions and selecting the inputs for the impair-
> PD, assumed as to be the average default rate, is calcu-
ment calculation, based on the Group’s past history, existing
lated on a cluster basis and taking into consideration mini-
market conditions as well as forward looking estimates at the
mum 24 month historical data;
end of each reporting period.
> LGD is function of the default bucket’s recovery rates, dis-
The expected credit loss (ECL), determined considering prob-
counted at the EIR; and
ability of default (PD), loss given default (LGD), and exposure
> EAD is estimated as the carrying exposure at the reporting
at default (EAD), is the difference between all contractual
date net of cash deposits, including invoices issued but not
cash flows that are due in accordance with the contract and
expired and invoices to be issued.
all cash flows that are expected to be received (i.e., all short-
Based on specific management evaluations, the forward-look-
falls) discounted at the original effective interest rate (EIR).
ing adjustment can be applied considering qualitative and
In particular, for trade receivables, contract assets and lease
quantitative information in order to reflect possible future
receivables, including those with a significant financial com-
events and macroeconomic scenarios, which may affect the
ponent, the Group applies the simplified approach, determin-
risk of the portfolio or the financial instrument.
ing expected credit losses over a period corresponding to the
For additional details on the key assumptions and inputs used,
entire life of the receivable, generally equal to 12 months.
please refer to note 43 “Financial instruments”.
175
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Depreciable value of certain elements of Italian
hydroelectric plants subsequent to enactment of
Law 134/2012
Law 134 of August 7, 2012 containing “urgent measures for
growth” (published in the Gazzetta Ufficiale of August 11,
2012) introduced a sweeping overhaul of the rules governing
hydroelectric concessions. Among its various provisions, the
law establishes that five years before the expiration of a ma-
jor hydroelectric water diversion concession and in cases of
lapse, relinquishment or revocation, where there is no pre-
vailing public interest for a different use of the water, incom-
patible with its use for hydroelectric generation, the compe-
tent public entity shall organize a public call for tender for the
award for consideration of the concession for a period ranging
from 20 to a maximum of 30 years.
In order to ensure operational continuity, the law also gov-
erns the methods of transfer ownership of the business unit
necessary to operate the concession, including all legal rela-
tionships relating to the concession, from the outgoing con-
cession holder to the new concession holder, in exchange for
payment of a price to be determined in negotiations between
the departing concession holder and the grantor agency, tak-
ing due account of the following elements:
> for intake and governing works, penstocks and outflow chan-
nels, which under the consolidated law governing waters
and electrical plants are to be relinquished free of charge
(Article 25 of Royal Decree 1775 of December 11, 1933), the
revalued cost less government capital grants, also revalued,
received by the concession holder for the construction of
such works, depreciated for ordinary wear and tear;
> for other property, plant and equipment, the market value,
meaning replacement value, reduced by estimated depre-
ciation for ordinary wear and tear.
While acknowledging that the new regulations introduce im-
portant changes as to the transfer of ownership of the busi-
ness unit with regard to the operation of the hydroelectric
concession, the practical application of these principles faces
difficulties, given the uncertainties that do not permit the for-
mulation of a reliable estimate of the value that can be recov-
ered at the end of existing concessions (residual value).
Accordingly, management has decided it could not produce a
reasonable and reliable estimate of residual value.
The fact that the legislation requires the new concession
holder to make a payment to the departing concession holder
prompted management to review the depreciation schedules
for assets classified as to be relinquished free of charge prior
to Law 134/2012 (until the year ended on December 31, 2011,
given that the assets were to be relinquished free of charge,
the depreciation period was equal to the closest date be-
tween the term of the concession and the end of the useful
life of the individual asset), calculating depreciation no longer
over the term of the concession but, if longer, over the eco-
nomic and technical life of the individual assets. If additional
information becomes available to enable the calculation of re-
sidual value, the carrying amounts of the assets involved will
be adjusted prospectively.
Determining the fair value of financial instruments
The fair value of financial instruments is determined on the
basis of prices directly observable in the market, where
available, or, for unlisted financial instruments, using specif-
ic valuation techniques (mainly based on present value) that
maximize the use of observable market inputs. In rare circum-
stances were this is not possible, the inputs are estimated by
management taking due account of the characteristics of the
instruments being measured.
In accordance with IFRS 13, the Group includes a measure-
ment of credit risk, both of the counterparty (Credit Valuation
Adjustment or CVA) and its own (Debit Valuation Adjustment
or DVA), in order to adjust the fair value of financial instru-
ments for the corresponding amount of counterparty risk, us-
ing the method discussed in note 47. Changes in the assump-
tions made in estimating the input date could have an impact
on the fair value recognized for those instruments.
Development costs
In order to determine the recoverability of development
costs, the recoverable amount is estimated making assump-
tions regarding any further cash outflow that is expected to
be incurred before the asset is ready for use or sale, the dis-
count rates to be applied and the expected period of benefits.
Pensions and other post-employment benefits
Some of the Group’s employees participate in pension plans
offering benefits based on their wage history and years of
service. Certain employees are also eligible for other post-em-
ployment benefit schemes.
The expenses and liabilities of such plans are calculated on
the basis of estimates carried out by consulting actuaries,
who use a combination of statistical and actuarial elements
in their calculations, including statistical data on past years
and forecasts of future costs. Other components of the esti-
mation that are considered include mortality and withdrawal
rates as well as assumptions concerning future developments
in discount rates, the rate of wage increases, the inflation rate
and trends in healthcare cost.
176
Consolidated Annual Report 2019 These estimates can differ significantly from actual develop-
nomic parameters of the country in which the plant is located.
ments owing to changes in economic and market conditions,
That liability is quantified by management on the basis of
increases or decreases in withdrawal rates and the lifespan of
the technology existing at the measurement date and is re-
participants, as well as changes in the effective cost of health-
viewed each year, taking account of developments in storage,
care.
decommissioning and site restoration technology, as well as
Such differences can have a substantial impact on the quanti-
the ongoing evolution of the legislative framework governing
fication of pension costs and other related expenses.
health and environmental protection.
For more details on the main actuarial assumptions adopted,
Subsequently, the value of the obligation is adjusted to reflect
please see note 36.
the passage of time and any changes in estimates.
Litigation
The Enel Group is involved in various civil, administrative and
Leases
When the interest rate implicit in the lease cannot be readily
tax disputes connected with the normal pursuit of its activi-
determined, the Group uses the incremental borrowing rate
ties that could give rise to significant liabilities. It is not always
(IBR) at the lease commencement date to calculate the pres-
objectively possible to predict the outcome of these disputes.
ent value of the lease payments. This is the interest rate that
The assessment of the risks associated with this litigation is
the lessee would have to pay to borrow over a similar term,
based on complex factors whose very nature requires re-
and with a similar security, the funds necessary to obtain an
course to management judgments, even when taking ac-
asset of a similar value to the right of use asset in a sim-
count of the contribution of external advisors assisting the
ilar economic environment. When no observable inputs are
Group, about whether to classify them as contingent liabilities
available, the Group estimates the IBR making assumptions
or liabilities.
to reflect the terms and conditions of the lease and certain
Provisions have been recognized to cover all significant lia-
entity-specific estimates.
bilities for cases in which legal counsel feels an adverse out-
One of the most significant judgements for the Group in adopt-
come is likely and a reasonable estimate of the amount of the
ing IFRS 16 is determining this IBR necessary to calculate the
loss can be made. Note 52 provides information on the most
present value of the lease payments required to be paid to the
significant contingent liabilities of the Group.
lessor. The Group’s approach to determine an IBR is based on
Obligations associated with generation plants,
including decommissioning and site restoration
Generation activities may entail obligations for the operator
the assessment of the following three key components:
> the risk free rate, that consider the currency flows of the
lease payments, the economic environment where the
lease contract has been negotiated and also the lease term;
with regard to future interventions that will have to be per-
> the credit spread adjustment, in order to calculate an IBR
formed following the end of the operating life of the plant.
that is specific for the lessee considering any Parent Com-
Such interventions may involve the decommissioning of
pany or other guarantee underlying;
plants and site restoration, or other obligations linked to the
> the lease related adjustments, in order to reflect into the
type of generation technology involved. The nature of such
IBR calculation the fact that the discount rate is directly
obligations may also have a major impact on the accounting
linked to the type of the underlying asset, rather than being
treatment used for them.
a general incremental borrowing rate. In particular, the risk
In the case of nuclear power plants, where the costs regard
of default is mitigated for the lessors as they have the right
both decommissioning and the storage of waste fuel and oth-
to reclaim the underlying asset itself.
er radioactive materials, the estimation of the future cost is
a critical process, given that the costs will be incurred over a
Income tax
very long span of time, estimated at up to 100 years.
The obligation, based on financial and engineering assump-
Recovery of deferred tax assets
tions, is calculated by discounting the expected future cash
At December 31, 2019, the consolidated financial statements
flows that the Group considers it will have to pay to meet the
report deferred tax assets in respect of tax losses to be re-
obligations it has assumed.
versed in subsequent years and income components whose
The discount rate used to determine the present value of the
deductibility is deferred in an amount whose recovery is con-
liability is the pre-tax risk-free rate and is based on the eco-
sidered by management to be highly probable.
177
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The recoverability of such assets is subject to the achieve-
ment of future profits sufficient to absorb such tax losses and
Determination of the existence of control
Under the provisions of IFRS 10, control is achieved when
to use the benefits of the other deferred tax assets.
the Group is exposed, or has rights, to variable returns from
Significant management judgement is required to assess the
its involvement with the investee and has the ability to affect
probability of recovering deferred tax assets, considering all
those returns through its power over the investee. Power is
negative and positive evidence, and to determine the amount
defined as the current ability to direct the relevant activities of
that can be recognized, based upon the likely timing and the
the investee based on existing substantive rights.
level of future taxable profits together with future tax planning
The existence of control does not depend solely on ownership
strategies and the tax rates applicable at the date of reversal.
of a majority shareholding, but rather it arises from substan-
However, where the Group should become aware that it is un-
tive rights that each investor holds over the investee. Con-
able to recover all or part of recognized tax assets in future
sequently, management must use its judgment in assessing
years, the consequent adjustment would be taken to the in-
whether specific situations determine substantive rights that
come statement in the year in which this circumstance arises.
give the Group the power to direct the relevant activities of
For more detail in deferred tax assets recognized or not rec-
the investee in order to affect its returns.
ognized, please see note 22.
Management judgments
Identification of cash generating units (CGUs)
For impairment testing, if the recoverable amount cannot be
For the purpose of assessing control, management analyses
all facts and circumstances, including any agreements with
other investors, rights arising from other contractual arrange-
ments and potential voting rights (call options, warrants, put
options granted to non-controlling shareholders, etc.). These
other facts and circumstances could be especially significant
determined for an individual asset, the Group identifies the
in such assessment when the Group holds less than a majori-
lowest aggregation of assets that generate largely independ-
ty of voting rights, or similar rights, in the investee.
ent cash inflows. The smallest group of assets that generates
Following such analysis of the existence of control, in appli-
cash inflows that are largely independent of the cash inflows
cation of IFRS 10 the Group consolidated certain companies
from other assets or group of assets is a CGU.
(Emgesa and Codensa) on a line-by-line basis even though it
Identifying such CGUs involves management judgments regard-
did not hold more than half of the voting rights, determining
ing the specific nature of the assets and the business involved
that the requirements for de facto control existed.
(geographical area, business area, regulatory framework, etc.)
The Group re-assesses whether or not it controls an investee
and the evidence that the cash inflows of the group of assets
if facts and circumstances indicate that there are changes to
are closely interdependent among them and largely independ-
one or more of the elements considered in verifying the ex-
ent of those associated with other assets (or groups of assets).
istence of control.
The assets of each CGU are also identified on the basis of the
manner in which management manages and monitors those
assets within the business model adopted.
The number and scope of the CGUs are updated systemati-
Determination of the existence of joint control and
of the type of joint arrangement
Under the provisions of IFRS 11, a joint arrangement is an
cally to reflect the impact of new business combinations and
agreement where two or more parties have joint control.
reorganizations carried out by the Group, and to take account
Joint control exists when the decisions over the relevant ac-
of external factors that could influence the ability of assets to
tivities require the unanimous consent of at least two parties
generate independent cash inflows.
of a joint arrangement.
In particular, if certain specific identified assets owned by
A joint arrangement can be configured as a joint venture or a
the Group are impacted by adverse economic or operating
joint operation. Joint ventures are joint arrangements where-
conditions that undermine their capacity to contribute to the
by the parties that have joint control have rights to the net
generation of cash flows, they can be isolated from the rest
assets of the arrangement. Conversely, joint operations are
of the assets of the CGU, undergo separate analysis of their
joint arrangements whereby the parties that have joint control
recoverability and be impaired where necessary.
have rights to the assets and obligations for the liabilities re-
The CGUs identified by management to which the goodwill
lating to the arrangement.
recognized in these consolidated financial statements has
In order to determine the existence of the joint control and
been allocated are indicated in note 21.
the type of joint arrangement, management must apply judg-
178
Consolidated Annual Report 2019 ment and assess its rights and obligations arising from the
On the basis of that analysis, the provisions of IFRIC 12 are
arrangement. For this purpose, the management considers
applicable to some of the infrastructure of a number of com-
the structure and legal form of the arrangement, the terms
panies that operate in Brazil.
agreed by the parties in the contractual arrangement and,
Further details about the infrastructure used in the service
when relevant, other facts and circumstances.
concession arrangements in the scope of IFRIC 12 are pro-
Following that analysis, the Group has considered its interest
vided in note 17.
in Asociación Nuclear Ascó-Vandellós II as a joint operation.
The Group re-assesses whether or not it has joint control if
facts and circumstances indicate that changes have occurred
Revenue from contracts with customers
In the process of applying IFRS 15, the Group has made the
in one or more of the elements considered in verifying the ex-
following judgments (further details about the most signifi-
istence of joint control and the type of the joint arrangement.
cant effect on the Group’s revenue are provided in the note
8.a “Revenue from sales and services”).
Determination of the existence of significant influence
over an associate
Associated companies are those in which the Group exercis-
Identification of the contract
The Group carefully analyses the contractual terms and con-
es significant influence, i.e. the power to participate in the
ditions on a jurisdictional level in order to determine when a
financial and operating policy decisions of the investee but
contract exists and the terms of that contract’s enforceability
not to exercise control or joint control over those policies. In
so as to apply IFRS 15 only to such contracts.
general, it is presumed that the Group has a significant influ-
ence when it has an ownership interest of 20% or more.
Identification and satisfaction of performance obligations
In order to determine the existence of significant influence,
When a contract includes multiple promised goods or servic-
management must apply judgment and consider all facts and
es, in order to assess if they should be accounted for sepa-
circumstances.
rately or as a group, the Group considers both the individual
The Group re-assesses whether or not it has significant influ-
characteristics of goods/services and the nature of the prom-
ence if facts and circumstances indicate that there are chang-
ise within the context of the contract, also evaluating all the
es to one or more of the elements considered in verifying the
facts and circumstances relating to the specific contract un-
existence of significant influence.
der the relevant legal and regulatory framework.
Application of “IFRIC 12 - Service concession
arrangements” to concessions
“IFRIC 12 - Service concession arrangements” applies to
“public-to-private” service concession arrangements, which
To evaluate when a performance obligation is satisfied, the
Group evaluates when the control of the goods or services
is transferred to the customer, assessed primarily from the
perspective of the customer.
can be defined as contracts wherein the grantor conveys to
Determination of the transaction price
an operator the right to manage the infrastructure used to
The Group considers all relevant facts and circumstances in
provide services that give access to major public facilities for
determining whether a contract includes variable considera-
a certain period of time on behalf of the grantor.
tion (i.e., consideration that may vary or depends upon the oc-
More specifically, IFRIC 12 gives guidance on the account-
currence or non-occurrence of a future event). In estimating
ing by operators for “public-to-private” service concession
variable consideration, the Group uses the method that better
arrangements in the event that:
predicts the consideration to which it will be entitled, apply-
> the grantor controls or regulates what services the opera-
ing it consistently throughout the contract and for similar con-
tor must provide with the infrastructure, to whom it must
tracts, also considering all available information, and updating
provide them, and at what price; and
such estimates until the uncertainly is resolved. The Group
> the grantor controls – through ownership, beneficial entitle-
includes the estimated variable consideration in the transac-
ment or otherwise – any significant residual interest in the
tion price only to the extent that it is high probable that a
infrastructure at the end of the term of the arrangement.
significant reversal in the cumulative revenue recognized will
In assessing the applicability of these requirements for the
not occur when the uncertainty is resolved.
Group, as operator, management carefully analyzed existing
concessions.
179
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Principal versus agent assessment
acteristics of the instrument, management performs the SPPI
The Group considers that it is an agent in some contracts in
test at an instrument level, in order to determine if it gives rise
which it is not primarily responsible for fulfilling the contract
to cash flows that are solely payments of principal and inter-
and therefore it does not control goods or services before
est (SPPI) on the principal amount outstanding, performing
they are being transferred to customers. For example, the
specific assessment on the contractual clauses of the finan-
Group acts as an agent in some contracts for electricity/gas
cial instruments, as well as quantitative analysis, if required.
network connection services and other related activities de-
The business model determines whether cash flows will re-
pending on local legal and regulatory framework.
sult from collecting contractual cash flows, selling the finan-
cial assets, or both.
Allocation of transaction price
For more details, please see note 43 “Financial instruments”.
For contracts that have more than one performance obligation
(e.g., “bundled” sale contracts), the Group generally allocates
the transaction price to each performance obligation in pro-
Hedge accounting
Hedge accounting is applied to derivatives in order to reflect
portion to its stand-alone selling price. The Group determines
into the financial statements the effect of risk management
stand-alone selling prices considering all information and us-
strategies.
ing observable prices when they are available in the market
Accordingly, at the inception of the transaction the Group doc-
or, if not, using an estimation method that maximizes the use
uments the hedge relationship between hedging instruments
of observable inputs and applying it consistently to similar ar-
and hedged items, as well as its risk management objectives
rangements.
and strategy. The Group also assesses, both at hedge incep-
If the Group evaluates that a contract includes an option
tion and on an ongoing basis, whether hedging instruments
for additional goods or services (e.g., customer loyalty pro-
are highly effective in offsetting changes in the fair values or
grams or renewal options) that represents a material right, it
cash flows of hedged items.
allocates the transaction price to this option since the option
On the basis of management’s judgement, the effectiveness
gives rise to an additional performance obligation.
assessment based on the existence of an economic rela-
Contract costs
tionship between the hedging instruments and the hedged
items, the dominance of credit risk in the value changes and
The Group assesses recoverability of the incremental costs
the hedge ratio, as well as the measurement of the ineffec-
of obtaining a contract either on a contract-by-contract basis,
tiveness, is evaluated through a qualitative assessment or a
or for a group of contracts if those costs are associated with
quantitative computation, depending on the specific facts and
the group of contracts.
circumstances and on the characteristics of the hedged items
The Group supports the recoverability of such costs on the ba-
and the hedging instruments.
sis of its experience with other similar transactions and eval-
For cash flow hedges of forecast transactions designated as
uating various factors, including potential renewals, amend-
hedged items, management assesses and documents that
ments and follow-on contracts with the same customer.
they are highly probable and present an exposure to changes
The Group amortizes such costs over the average customer
in cash flows that affect profit or loss.
term. In order to determine this expected period of benefit
For additional details on the key assumptions about effective-
from the contract, the Group considers its past experience
ness assessment and ineffectiveness measurement, please
(e.g., “churn rate”), the predictive evidence from similar con-
refer to note 46.1 “Derivatives and hedge accounting”.
tracts and available information about the market.
Classification and measurement of financial assets
At initial recognition, in order to classify financial assets as
Leases
The complexity of the assessment of the lease contracts, and
also their long-term expiring date, requires considerable pro-
financial assets at amortized cost, at fair value through oth-
fessional judgments for application of IFRS 16. In particular,
er comprehensive income and at fair value through profit or
this regards:
loss, management assesses both the contractual cash-flow
> the application of the definition of a lease to the cases typ-
characteristics of the instrument and the business model for
ical of the sectors in which the Group operates;
managing financial assets in order to generate cash flows.
> the identification of the non-lease component into the
For the purpose of evaluating the contractual cash-flow char-
lease arrangements;
180
Consolidated Annual Report 2019 > the evaluation of any renewable and termination options in-
returns deriving from its involvement and has the ability, through
cluded into the lease arrangements in order to determine the
the exercise of its power over the investee, to affect its returns.
lease term of contracts, also considering the probability of
The figures of the subsidiaries are consolidated on a full line-
their exercise and any significant leasehold improvements on
by-line basis as from the date control is acquired until such
the underlying asset, taking due consideration of recent in-
control ceases.
terpretations issued by the IFRS Interpretations Committee;
> the identification of any variable lease payments that
depend on an index or a rate to determine whether the
Consolidation procedures
The financial statements of subsidiaries used to prepare the
changes of the latter impact the future lease payments and
consolidated financial statements were prepared at December
also the amount of the right-of-use asset;
31, 2018 in accordance with the accounting policies adopted by
> the estimate of the discount rate to calculate the present
the Parent Company.
value of the lease payments; further details on assump-
If a subsidiary uses different accounting policies from those
tions about this rate are provided in the paragraph “Use of
adopted in preparing the consolidated financial statements for
estimates”.
Uncertainty over income tax treatments
The Group determines whether to consider each uncertain in-
similar transactions and facts in similar circumstances, appro-
priate adjustments are made to ensure conformity with the
Group’s accounting policies.
Assets, liabilities, revenue and expenses of a subsidiary acquired
come tax treatment separately or together with one or more
or disposed of during the year are included in or excluded from
other uncertain tax treatments as well as whether to reflect
the consolidated financial statements, respectively, from the
the effect of uncertainty by using the most likely amount or
date the Group gains control or until the date the Group ceases
the expected value method, based on which approach better
to control the subsidiary.
predicts the resolution of the uncertainty for each uncertain
Profit or loss and the other components of other compre-
tax treatments, taking account of local tax regulations.
hensive income are attributed to the owners of the Parent
2.2 Significant accounting
policies
and non-controlling interests, even if this results in a loss for
non-controlling interests.
All intercompany assets and liabilities, equity, income, expenses
and cash flows relating to transactions between entities of the
Group are eliminated in full.
Related parties
Related parties are mainly parties that have the same controlling
Changes in ownership interest in subsidiaries that do not result
in loss of control are accounted for as equity transactions, with
entity as Enel SpA, companies that directly or indirectly through
the carrying amounts of the controlling and non-controlling in-
one or more intermediaries control, are controlled or are sub-
terests adjusted to reflect changes in their interests in the sub-
ject to the joint control of Enel SpA and in which the latter has a
sidiary. Any difference between the fair value of the considera-
holding that enables it to exercise a significant influence. Related
tion paid or received and the corresponding fraction of equity
parties also include entities operating post-employment benefit
acquired or sold is recognized in consolidated equity.
plans for employees of Enel SpA or its associates (specifically, the
When the Group ceases to have control over a subsidiary, any in-
FOPEN and FONDENEL pension funds), as well as the members
terest retained in the entity is remeasured to its fair value, recog-
of the boards of statutory auditors, and their immediate family,
nized through profit or loss, at the date when control is lost, rec-
and the key management personnel, and their immediate fami-
ognizing any gain or loss through profit or loss. In addition, any
ly, of Enel SpA and its subsidiaries. Key management personnel
amounts previously recognized in other comprehensive income
comprises management personnel who have the power and di-
in respect of the former subsidiary are accounted for as if the
rect or indirect responsibility for the planning, management and
Group had directly disposed of the related assets or liabilities.
control of the activities of the Company. They include directors.
Subsidiaries
Subsidiaries are all entities over which the Group has control. The
Investments in joint arrangements and
associates
A joint venture is an entity over which the Group exercises joint
Group controls an entity, regardless of the nature of the formal re-
control and has rights to the net assets of the arrangement. Joint
lationship between them, when it is exposed/has rights to variable
control is the sharing of control of an arrangement, whereby de-
181
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements cisions about the relevant activities require unanimous consent
er comprehensive income in respect of the former associate or
of the parties sharing control.
joint venture are accounted for as if the Group had directly dis-
An associate is an entity over which the Group has significant
posed of the related assets or liabilities.
influence. Significant influence is the power to participate in the
If the Group’s ownership interest in an associate or a joint ven-
financial and operating policy decisions of the investee without
ture is reduced, but the Group continues to exercise a significant
having control or joint control over the investee.
influence or joint control, the Group continues to apply the equi-
The Group’s investments in its joint ventures and associates are
ty method and the share of the gain or loss that had previously
accounted for using the equity method.
been recognized in other comprehensive income relating to that
Under the equity method, these investments are initially recog-
reduction is accounted for as if the Group had directly disposed
nized at cost and any goodwill arising from the difference be-
of the related assets or liabilities.
tween the cost of the investment and the Group’s share of the
When a portion of an investment in an associate or joint venture
net fair value of the investee’s identifiable assets and liabilities
meets the criteria to be classified as held for sale, any retained
at the acquisition date is included in the carrying amount of the
portion of an investment in the associate or joint venture that
investment. Goodwill is not individually tested for impairment.
has not been classified as held for sale is accounted for using
After the acquisition date, their carrying amount is adjusted to rec-
the equity method until disposal of the portion classified as held
ognize changes in the Group’s share of profit or loss of the asso-
for sale takes place.
ciate or joint venture. The other comprehensive income (OCI) of
Joint operations are joint arrangements whereby the Group,
such investees is presented as specific items of the Group’s OCI.
which holds joint control, has rights to the assets and obligations
Distributions received from joint ventures and associates reduce
for the liabilities relating to the arrangement. For each joint oper-
the carrying amount of the investments.
ation, the Group recognized assets, liabilities, costs and revenue
Profits and losses resulting from transactions between the
on the basis of the provisions of the arrangement rather than the
Group and the associates or joint ventures are eliminated to the
participating interest held.
extent of the interest in the associate or joint venture.
The financial statements of the associates or joint ventures are
prepared for the same reporting period as the Group. When nec-
Translation of foreign currency items
Transactions in currencies other than the functional currency
essary, adjustments are made to bring the accounting policies in
are recognized at the exchange rate prevailing on the date of
line with those of the Group.
the transaction. Monetary assets and liabilities denominated in
After application of the equity method, the Group determines
a foreign currency other than the functional currency are later
whether it is necessary to recognize an impairment loss on its
translated using the period-end exchange rate.
investment in an associate or joint venture. If there is such ev-
Non-monetary assets and liabilities denominated in foreign cur-
idence, the Group calculates the amount of impairment as the
rency that are recognized at historical cost are translated using
difference between the recoverable amount of the associate or
the exchange rate at the date of the transaction. Non-monetary
joint venture and its carrying amount.
assets and liabilities in foreign currency measured at fair value
In the case of the Slovak Power Holding BV joint venture, any
are translated using the exchange rate at the date that value
impairment losses are assessed by determining the recoverable
was determined. Any exchange rate differences are recognized
value using the price formula specified in the agreement to sell
through profit or loss.
the 66% stake in Slovenské elektrárne by Enel Produzione to EP
In determining the spot exchange rate to use on initial recog-
Slovakia, which is based on various parameters, including the
nition of the related asset, expense or income (or part of it)
evolution of the net financial position of SE, developments in
on the derecognition of a non-monetary asset or non-mone-
energy prices in the Slovakian market, the operating efficiency
tary liability relating to advance consideration, the date of the
of SE as measured on the basis of benchmarks defined in the
transaction is the date on which the Group initially recognizes
contract and the enterprise value of Mochovce units 3 and 4.
the non-monetary asset or non-monetary liability associated
This value is compared against the carrying amount of the in-
with the advance consideration.
vestment, which is measured on the basis of the results of that
If there are multiple advance payments or receipts, the Group
formula at the closing date for the transaction of July 28, 2017.
determines the transaction date for each payment or receipt of
If the investment ceases to be an associate or a joint venture,
advance consideration.
the Group recognizes any retained investment at its fair value,
through profit or loss. Any amounts previously recognized in oth-
182
Consolidated Annual Report 2019 Translation of financial statements
denominated in a foreign currency
For the purposes of the consolidated financial statements, all
profits/losses, assets and liabilities are stated in euro, which is
the presentation currency of the Parent Company, Enel SpA.
In order to prepare the consolidated financial statements, the
financial statements of consolidated companies in functional
currencies other than the presentation currency used in the
consolidated financial statements are translated into euros by
applying the relevant period-end exchange rate to the assets
and liabilities, including goodwill and consolidation adjust-
Business combinations carried out as from January 1, 2010 are
recognized on the basis of IFRS 3 (2008), which is referred to as
IFRS 3 (Revised) hereafter.
More specifically, business combinations are recognized using
the acquisition method, where the purchase cost (the consider-
ation transferred) is equal to the fair value at the purchase date
of the assets acquired and the liabilities incurred or assumed,
as well as any equity instruments issued by the purchaser. The
consideration transferred includes the fair value of any asset or
liability resulting from a contingent consideration arrangement.
Costs directly attributable to the acquisition are recognized
ments, and the average exchange rate for the period, which
through profit or loss.
approximates the exchange rates prevailing at the date of the
The consideration transferred is allocated by recognizing the
respective transactions, to the income statement items.
Any resulting exchange rate gains or losses are recognized as
a separate component of equity in a special reserve. The gains
and losses are recognized proportionately in the income state-
ment on the disposal (partial or total) of the subsidiary.
Business combinations
Business combinations initiated before January 1, 2010 and
completed within that financial year are recognized on the basis
of IFRS 3 (2004).
Such business combinations were recognized using the pur-
assets, liabilities and identifiable contingent liabilities of the ac-
quired company at their fair values as at the acquisition date.
Any positive difference between the price paid, measured
at fair value as at the acquisition date, plus the value of any
non-controlling interests, and the net value of the identifiable
assets and liabilities of the acquiree measured at fair value
is recognized as goodwill. If the difference is negative, the
Group verifies whether it has correctly identified all the assets
acquired and liabilities assumed and reviews the procedures
used to determine the amounts to recognize at the acquisition
date. If after this assessment the fair value of the net assets
chase method, where the purchase cost is equal to the fair
acquired still exceeds the total consideration transferred, this
value at the date of the exchange of the assets acquired and
excess represents the profit on a bargain purchase and is rec-
the liabilities incurred or assumed, plus costs directly attribut-
ognized through profit or loss.
able to the acquisition. This cost was allocated by recognizing
the assets, liabilities and identifiable contingent liabilities of the
acquired company at their fair values. Any positive difference
The value of non-controlling interests is determined either in
proportion to the interest held by minority shareholders in the
net identifiable assets of the acquiree or at their fair value as at
between the cost of the acquisition and the fair value of the net
the acquisition date.
assets acquired pertaining to the shareholders of the Parent
Company was recognized as goodwill. If the difference is neg-
ative, the Group re-assesses whether it has correctly identified
In the case of business combinations achieved in stages, at the
date of acquisition of control the previously held equity interest
in the acquiree is remeasured to fair value and any positive or
all of the assets acquired and all of the liabilities assumed and
negative difference is recognized in profit or loss.
reviews the procedures used to measure the amounts to be
recognized at the acquisition date. If the reassessment still re-
sults in an excess of the fair value of net assets acquired over
the aggregate consideration transferred, the resulting gain is a
bargain purchase and is recognized through profit or loss.
The value of non-controlling interests was determined in pro-
portion to the interest held by minority shareholders in the net
assets. In the case of business combinations achieved in stag-
Any contingent consideration is recognized at fair value at the
acquisition date. Subsequent changes to the fair value of the
contingent consideration classified as an asset or a liability, or
as a financial instrument within the scope of IFRS 9, is recog-
nized in profit or loss. If the contingent consideration is not
within the scope of IFRS 9, it is measured in accordance with
the appropriate IFRS-EU. Contingent consideration that is clas-
sified as equity is not re-measured, and its subsequent settle-
es, at the date of acquisition any adjustment to the fair value of
ment is accounted for within equity.
the net assets acquired previously was recognized in equity; the
If the fair values of the assets, liabilities and contingent liabili-
amount of goodwill was determined for each transaction sepa-
rately based on the fair values of the acquiree’s net assets at the
date of each exchange transaction.
ties can only be calculated on a provisional basis, the business
combination is recognized using such provisional values. Any
adjustments resulting from the completion of the measure-
183
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements ment process are recognized within 12 months of the date of
acquisition, restating comparative figures.
Fair value measurement
For all fair value measurements and disclosures of fair value,
Property, plant and equipment
Property, plant and equipment is stated at cost, net of ac-
cumulated depreciation and accumulated impairment losses,
if any. Such cost includes expenses directly attributable to
bringing the asset to the location and condition necessary for
that are either required or permitted by international account-
its intended use.
ing standards, the Group applies IFRS 13.
The cost is also increased by the present value of the es-
Fair value is defined as the price that would be received to sell
timate of the costs of decommissioning and restoring the
an asset or paid to transfer a liability, in an orderly transaction,
site on which the asset is located where there is a legal or
between market participants, at the measurement date (i.e.,
constructive obligation to do so. The corresponding liability
an exit price).
is recognized under provisions for risks and charges. The ac-
The fair value measurement assumes that the transaction to
counting treatment of changes in the estimate of these costs,
sell an asset or transfer a liability takes place in the principal
the passage of time and the discount rate is discussed under
market, i.e. the market with the greatest volume and level of
“Provisions for risks and charges”.
activity for the asset or liability. In the absence of a principal
Property, plant and equipment transferred from customers to
market, it is assumed that the transaction takes place in the
connect them to the electricity distribution network and/or to
most advantageous market to which the Group has access, i.e.
provide them with other related services is initially recognized
the market that maximizes the amount that would be received
at its fair value at the date on which control is obtained.
to sell the asset or minimizes the amount that would be paid
Borrowing costs that are directly attributable to the acquisi-
to transfer the liability.
tion, construction or production of a qualifying asset, i.e. an
The fair value of an asset or a liability is measured using the
asset that takes a substantial period of time to get ready for
assumptions that market participants would use when pricing
its intended use or sale, are capitalized as part of the cost
the asset or liability, assuming that market participants act
of the assets themselves. Borrowing costs associated with
in their economic best interest. Market participants are inde-
the purchase/construction of assets that do not meet such
pendent, knowledgeable sellers and buyers who are able to
requirement are expensed in the period in which they are in-
enter into a transaction for the asset or the liability and who
curred.
are motivated but not forced or otherwise compelled to do
Certain assets that were revalued at the IFRS-EU transition
so.
date or in previous periods are recognized at their fair value,
When measuring fair value, the Group takes into account the
which is considered to be their deemed cost at the revalua-
characteristics of the asset or liability, in particular:
tion date.
> for a non-financial asset, a fair value measurement takes
Where individual items of major components of property,
into account a market participant’s ability to generate eco-
plant and equipment have different useful lives, the compo-
nomic benefits by using the asset in its highest and best
nents are recognized and depreciated separately.
use or by selling it to another market participant that would
Subsequent costs are recognized as an increase in the carry-
use the asset in its highest and best use;
ing amount of the asset when it is probable that future eco-
> for liabilities and own equity instruments, the fair value re-
nomic benefits associated with the cost incurred to replace
flects the effect of non-performance risk, i.e. the risk that
a part of the asset will flow to the Group and the cost of the
an entity will not fulfill an obligation, including among oth-
item can be measured reliably. All other costs are recognized
ers the credit risk of the Group itself;
in profit or loss as incurred.
> in the case of groups of financial assets and financial liabil-
The cost of replacing part or all of an asset is recognized as an
ities with offsetting positions in market risk or credit risk,
increase in the carrying amount of the asset and is depreciat-
managed on the basis of an entity’s net exposure to such
ed over its useful life; the net carrying amount of the replaced
risks, it is permitted to measure fair value on a net basis.
unit is derecognized through profit or loss.
In measuring the fair value of assets and liabilities, the Group
Property, plant and equipment, net of its residual value, is
uses valuation techniques that are appropriate in the circum-
depreciated on a straight-line basis over its estimated useful
stances and for which sufficient data are available, maximizing
life, which is reviewed annually and, if appropriate, adjusted
the use of relevant observable inputs and minimizing the use
prospectively. Depreciation begins when the asset is available
of unobservable inputs.
for use.
184
Consolidated Annual Report 2019 The estimated useful life of the main items of property, plant
charge at the end of the concessions. These mainly regard
major water diversion works and the public lands used for the
10-70 years
operation of the thermal power plants.
10-100 years
Within the Italian regulatory framework in force until 2011, if
and equipment is as follows:
Civil buildings
Buildings and civil works incorporated in
plants
Hydroelectric power plants:
- penstocks
- mechanical and electrical machinery
- other fixed hydraulic works
Thermal power plants:
- boilers and auxiliary components
- gas turbine components
- mechanical and electrical machinery
- other fixed hydraulic works
Nuclear power plants
Geothermal power plants:
- cooling towers
- turbines and generators
- turbine parts in contact with fluid
- mechanical and electrical machinery
Wind power plants:
- towers
- turbines and generators
- mechanical and electrical machinery
Solar power plants:
7-85 years
5-60 years
5-100 years
3-59 years
3-59 years
3-59 years
3-62 years
50 years
20-25 years
25-30 years
10-25 years
20-40 years
20-30 years
20-30 years
15-30 years
- mechanical and electrical machinery
20-30 years
Public and artistic lighting:
- public lighting installations
- artistic lighting installations
Transport lines
Transformer stations
Distribution plants:
- high-voltage lines
- primary transformer stations
- low and medium-voltage lines
Meters:
- electromechanical meters
- electricity balance measurement
equipment
- electronic meters
10-20 years
20 years
12-50 years
20-55 years
10-60 years
5-55 years
5-50 years
3-34 years
3-30 years
6-35 years
The useful life of leasehold improvements is determined on
the basis of the term of the lease or, if shorter, on the duration
of the benefits produced by the improvements themselves.
Land is not depreciated as it has an indefinite useful life.
Assets recognized under property, plant and equipment are
derecognized either upon their disposal (i.e., at the date the
recipient obtains control) or when no future economic benefit
is expected from their use or disposal. Any gain or loss, rec-
ognized through profit or loss, is calculated as the difference
between the net disposal proceeds, determined in accordance
with the transaction price requirements of IFRS 15, and the net
carrying amount of the derecognized assets.
Assets to be relinquished free of charge
The Group’s plants include assets to be relinquished free of
the concessions are not renewed, at those dates all intake
and governing works, penstocks, outflow channels and other
assets on public lands were to be relinquished free of charge
to the State in good operating condition. Accordingly, depre-
ciation on assets to be relinquished was calculated over the
shorter of the term of the concession and the remaining use-
ful life of the assets.
In the wake of the legislative changes introduced with Law
134 of August 7, 2012, the assets previously classified as
assets “to be relinquished free of charge” connected with
the hydroelectric water diversion concessions are now con-
sidered in the same manner as other categories of “property,
plant and equipment” and are therefore depreciated over the
economic and technical life of the asset (where this exceeds
the term of the concession), as discussed in the paragraph
above on the “Depreciable value of certain elements of Ital-
ian hydroelectric plants subsequent to enactment of Law
134/2012”, which you are invited to consult for more details.
In accordance with Spanish laws 29/1985 and 46/1999, hy-
droelectric power stations in Spanish territory operate under
administrative concessions at the end of which the plants will
be returned to the government in good operating condition.
The terms of the concessions extend up to 2067.
A number of generation companies that operate in Argentina,
Brazil and Mexico hold administrative concessions with simi-
lar conditions to those applied under the Spanish concession
system. These concessions will expire by 2088.
Infrastructures serving a concession
As regards the distribution of electricity, the Group is a con-
cession holder in Italy for this service. The concession, grant-
ed by the Ministry for Economic Development, was issued
free of charge and terminates on December 31, 2030. If the
concession is not renewed upon expiry, the grantor is re-
quired to pay an indemnity. The amount of the indemnity will
be determined by agreement of the parties using appropriate
valuation methods, based on both the balance-sheet value of
the assets themselves and their profitability.
In determining the indemnity, such profitability will be represent-
ed by the present value of future cash flows. The infrastructure
serving the concessions is owned and available to the conces-
sion holder. It is recognized under “Property, plant and equip-
ment” and is depreciated over the useful lives of the assets.
185
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Enel also operates under administrative concessions for the
distribution of electricity in other countries (including Spain
and Romania). These concessions give the right to build and
operate distribution networks for an indefinite period of time.
Infrastructures within the scope
of “IFRIC 12 - Service concession
arrangements”
Under a “public-to-private” service concession arrangement
within the scope of “IFRIC 12 - Service concession arrange-
ments”, the operator acts as a service provider and, in ac-
cordance with the terms specified in the contract, it con-
structs/upgrades the infrastructure used to provide a public
service and operates and maintains that infrastructure for the
period of the concession.
The Group, as operator, does not account for the infrastruc-
ture within the scope of IFRIC 12 as property, plant and equip-
ment and it recognizes and measures revenue in accordance
with IFRS 15 for the services it performs. In particular, when
the Group provides construction or upgrade services, de-
pending on the characteristics of the service concession ar-
rangement, it recognizes:
> a financial asset, if the Group has an unconditional con-
tractual right to receive cash or another financial asset
from the grantor (or from a third party at the direction of
the grantor), that is the grantor has little discretion to avoid
payment. In this case, the grantor contractually guarantees
to pay to the operator specified or determinable amounts
or the shortfall between the amounts received from the
users of the public service and specified or determinable
amounts (defined by the contract), and such payments are
not dependent on the usage of the infrastructure; and/or
> an intangible asset, if the Group receives the right (a li-
cense) to charge users of the public service provided. In
such a case, the operator does not have an unconditional
right to receive cash because the amounts are contingent
Leases
The Group holds property, plant and equipment for its various
activities under lease contracts. At inception of a contract, the
Group assesses whether a contract is, or contains, a lease.
For contracts entered into or changed on or after January
1, 2019, the Group has applied the definition of a lease un-
der IFRS 16, that is met if the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration.
Conversely, for contracts entered into before January 1,
2019, the Group determined whether the arrangement was
or contained a lease under IFRIC 4.
Group as a lessee
At commencement or on modification of a contract that con-
tains a lease component and one or more additional lease or
non-lease components, the Group allocates the considera-
tion in the contract to each lease component on the basis of
its relative stand-alone prices.
The Group recognizes a right-of-use asset and a lease liability
at the commencement date of the lease (i.e., the date the
underlying asset is available for use).
The right-of-use asset represents a lessee’s right to use an
underlying asset for the lease term; it is initially measured
at cost, which includes the initial amount of a lease liability
adjusted for any lease payments made at or before the com-
mencement date less any lease incentives received, plus any
initial direct costs incurred and an estimate of costs to dis-
mantle and remove the underlying asset and to restore the
underlying asset or the site on which it is located.
Right-of-use assets are subsequently depreciated on a
straight-line basis over the shorter of the lease term and the
estimated useful lives of the right-of-use assets, as follows:
Average residual life
(years)
7
31
5
on the extent that the public uses the service.
Buildings
If the Group (as operator) has a contractual right to receive
Ground rights of renewable energy plants
an intangible asset (a right to charge users of public service),
Vehicles and other means of transport
borrowing costs are capitalized using the criteria specified in
the paragraph “Property, plant and equipment”.
If ownership of the leased underlying asset transfers to the
However, for construction/upgrade services, both types of
Group at the end of the lease term or if the cost of the right-
consideration are generally classified as a contract asset dur-
of-use asset reflects the exercise of a purchase option, de-
ing the construction/upgrade period.
preciation is calculated using the estimated useful life of the
For more details about such consideration, please see note
underlying asset.
8.a “Revenue from sales and services”.
In addition, the right-of-use assets are subject to impairment
and adjusted for any remeasurement of lease liabilities. Fur-
ther details about impairment are provided in the paragraph
186
Consolidated Annual Report 2019 “Impairment of non-financial assets”.
from accounting under IAS 17.
The lease liability is initially measured at the present value of
When the Group acts as a lessor, it determines at the lease
lease payments to be made over the lease term. In calculat-
inception date whether each lease is a finance lease or an
ing the present value of lease payments, the Group uses the
operating lease using the same classification principle under
lessee’s incremental borrowing rate at the lease commence-
IAS 17.
ment date when the interest rate implicit in the lease is not
If a contract contains lease and non-lease components, the
readily determinable.
Group allocates the consideration in the contract applying
Variable lease payments that do not depend on an index or
IFRS 15.
a rate are recognized as expenses in the period in which the
The Group accounts for rental income arising from operating
event or condition that triggers the payment occurs.
leases on a straight-line basis over the lease terms and it rec-
After the commencement date, the lease liability is meas-
ognizes them as other revenue.
ured at amortized cost using the effective interest method
and is remeasured upon the occurrence of certain events.
The Group applies the short-term lease recognition exemption
Investment property
Investment property consists of the Group’s real estate held
to its lease contracts that have a lease term of 12 months or
to earn rentals and/or for capital appreciation rather than for
less from the commencement date. It also applies the low-val-
use in the production or supply of goods and services.
ue assets recognition exemption to lease contracts for which
Investment property is measured at acquisition cost less any
the underlying asset is of low-value whose amount is estimated
accumulated depreciation and any accumulated impairment
not material. As example, the Group has leases of certain office
losses.
equipment (i.e., personal computers, printing and photocopying
Investment property, excluding land, is depreciated on a
machines) that are considered of low-value. Lease payments on
straight-line basis over the useful lives of the related assets.
short-term leases and leases of low-value assets are recognized
Impairment losses are determined on the basis of the criteria
as expense on a straight-line basis over the lease term.
following described.
The Group presents right-of-use assets that do not meet
The breakdown of the fair value of investment property is
the definition of investment property in “Property, plant and
detailed in note 47 “Assets measured at fair value”.
equipment” and lease liabilities in “Borrowings”.
Investment property is derecognized either when it has been
Consistent with the requirement of the standard, the Group
transferred (i.e., at the date the recipient obtains control) or
presents separately the interest expense on lease liabilities
when it is permanently withdrawn from use and no future
under “Other financial expense” and the depreciation charge
economic benefit is expected from its disposal. Any gain or
on the right-of-use assets under “Depreciation, amortization
loss, recognized through profit or loss, is calculated as the
and impairment losses”.
difference between the net disposal proceeds, determined in
Previously, in compliance with IAS 17, the Group classified
accordance with the transaction price requirements of IFRS
leases which transfer substantially all the risks and rewards in-
15, and the net book value of the derecognized assets.
cidental to the ownership of the related asset to the lessee as
Transfers are made to (or from) investment property only
finance leases. In this case, leased assets were recognized at
when there is a change in use.
the lower of their fair value and the present value of the mini-
mum lease payments due, including the payment required to
exercise any purchase option. Subsequent to initial recognition,
Intangible assets
Intangible assets are identifiable assets without physical
the assets were depreciated on the basis of their useful lives or,
substance controlled by the entity and capable of generating
if the Group was not reasonably certain to acquire the assets at
future economic benefits. They are measured at purchase or
the end of the lease, over the shorter of the lease term and the
internal development cost when it is probable that the use of
useful life of the assets. Leases which did not comply with the
such assets will generate future economic benefits and the
definition of a finance lease were classified as operating leases;
related cost can be reliably determined.
payments made under operating lease were recognized as a
The cost includes any directly attributable expenses neces-
cost on a straight-line basis over the lease term.
sary to make the assets ready for their intended use.
Group as a lessor
Lessor accounting under IFRS 16 is substantially unchanged
Development costs are recognized as an intangible asset
only when Group can demonstrate the technical feasibility
of completing the intangible asset, its intention and ability to
187
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements complete development and to use or sell the asset and the
The Group also presents capitalized costs to obtain a contract
availability of resources to complete the asset.
with a customer within the scope of IFRS 15 in this item.
Research costs are recognized as expenses.
The Group recognizes such costs as an asset only if:
Intangible assets with a finite useful life are reported net of
> the costs are incremental, that is they are directly attrib-
accumulated amortization and any impairment losses.
utable to an identified contract and the Group would not
Amortization is calculated on a straight-line basis over the
have incurred them if the contract had not been obtained;
item’s estimated useful life, which is reassessed at least an-
> the Group expects to recover them, through reimburse-
nually; any changes in amortization policies are reflected on a
ments (direct recoverability) or the margin (indirect recov-
prospective basis. Amortization commences when the asset
erability).
is ready for use. Consequently, intangible assets not yet avail-
In particular, the Group generally capitalizes trade fees and
able for use are not amortized, but are tested for impairment
commissions paid to agents for such contracts if the capital-
at least annually.
ization criteria are met.
The Group’s intangible assets have a definite useful life, with
Capitalized contract costs are amortized on a systematic ba-
the exception of a number of concessions and goodwill.
sis, consistent with the pattern of the transfer of the goods
Intangible assets with indefinite useful lives are not amor-
or services to which they relate, and undergo impairment
tized, but are tested for impairment annually.
testing to identify any impairment losses to the extent that
The assessment of indefinite life is reviewed annually to de-
the carrying amount of the asset recognized exceeds the re-
termine whether the indefinite life continues to be supporta-
coverable amount.
ble. If not, the change in useful life from indefinite to finite is
The Group amortizes the capitalized contract costs on a
accounted for as a change in accounting estimate.
straight-line basis over the expected period of benefit from
Intangible assets are derecognized either at the time of their
the contract (i.e., the average term of the customer relation-
disposal (at the date when the recipient obtains control) or
ship); any changes in amortization policies are reflected on a
when no future economic benefit is expected from their use
prospective basis.
or disposal. Any gain or loss, recognized through profit or
The Group does not incur any costs to fulfil a contract that are
loss, is calculated as the difference between the net consid-
eligible for capitalization.
eration received in the disposal, determined in accordance
with the provisions of IFRS 15 concerning the transaction
price, and the net book value of the derecognized assets.
Goodwill
Goodwill arises on the acquisition of subsidiaries and rep-
The estimated useful life of the main intangible assets, distin-
resents the excess of the acquisition cost, of any non-con-
guishing between internally generated and acquired assets,
trolling interest and of any previously held interest over the
is as follows:
Development costs:
- internally generated
- acquired
acquisition date fair value of the acquiree’s assets, liabilities
and identifiable contingent liabilities. After initial recognition,
goodwill is not amortized, but is tested for recoverability at
2-26 years
least annually using the criteria described in the paragraph
3-26 years
“Impairment of non-financial assets”. For the purpose of im-
Industrial patents and intellectual property rights:
pairment testing, goodwill is allocated, from the acquisition
- internally generated
- acquired
Concessions, licenses, trademarks and similar rights:
- internally generated
- acquired
Intangible assets from service concession arrangements:
- internally generated
- acquired
Other:
- internally generated
- acquired
188
3-10 years
2-50 years
20 years
1-40 years
-
5 years
2-28 years
1-28 years
date, to each of the cash generating units (CGUs) that are
expected to benefit from the synergies of the combination.
Goodwill relating to equity investments in associates and
joint ventures is included in their carrying amount.
Impairment of non-financial assets
At each reporting date, non-financial assets are reviewed to
determine whether there is evidence of impairment.
Goodwill, intangible assets with an indefinite useful life and
intangible assets not yet available for use are tested for re-
coverability annually or more frequently if there is evidence
suggesting that the assets can be impaired.
Consolidated Annual Report 2019 If such evidence exists, the recoverable amount of any in-
volved asset is estimated on the basis of the use of the as-
set and their future disposal, in accordance with the Group’s
most recent business plan. For the estimate of the recov-
tificates, energy efficiency certificates and CO2 emissions
allowances) that were not utilized for compliance in the re-
porting period. As regards CO2 emissions allowances, inven-
tories are allocated between the trading portfolio and the
erable amount, please refer to the paragraph “Use of esti-
compliance portfolio, i.e. those used for compliance with
mates”.
The recoverable amount is determined for an individual as-
set, unless the asset do not generate cash inflows that are
greenhouse gas emissions requirements. Within the latter,
CO2 emissions allowances are allocated to sub-portfolios on
the basis of the compliance year to which they have been
largely independent of those from other assets or groups of
assigned.
assets and therefore it is determined for the cash generating
Inventories also include nuclear fuel stocks, use of which is
unit (CGU) to which the asset belongs.
determined on the basis of the electricity generated.
If the carrying amount of an asset or of a CGU to which it is
Materials and other consumables (including energy commod-
allocated is greater than its recoverable amount, an impair-
ities) held for use in production are not written down if it is
ment loss is recognized in profit or loss under “Depreciation,
expected that the final product in which they will be incorpo-
amortization and impairment losses”.
rated will be sold at a price sufficient to enable recovery of
Impairment losses of CGUs are firstly charged against the car-
the cost incurred.
rying amount of any goodwill attributed to it and then against
the other assets, in proportion to their carrying amount.
If the reasons for a previously recognized impairment loss no
Financial instruments
Financial instruments are any contract that gives rise to a finan-
longer obtain, the carrying amount of the asset is restored
cial asset of one entity and a financial liability or equity instru-
through profit or loss, under “Depreciation, amortization and
ment of another entity; they are recognized and measured in
impairment losses”, in an amount that shall not exceed the
accordance with IAS 32 and IFRS 9.
net carrying amount that the asset would have had if the im-
A financial asset or liability is recognized in the consolidated fi-
pairment loss had not been recognized and depreciation or
nancial statements when, and only when, the Group becomes
amortization had been performed. The original value of good-
party to the contractual provision of the instrument (trade date).
will is not restored even if in subsequent years the reasons
Trade receivables arising from contracts with customers, in
for the impairment no longer obtain.
the scope of IFRS 15, are initially measured at their transaction
If certain specific identified assets owned by the Group are
price (as defined in IFRS 15) if such receivables do not contain
impacted by adverse economic or operating conditions that
a significant financing component or when the Group applies
undermine their capacity to contribute to the generation of
the practical expedient allowed by IFRS 15.
cash flows, they can be isolated from the rest of the assets
Conversely, the Group initially measures financial assets other
of the CGU, undergo separate analysis of their recoverability
than receivables above-mentioned at their fair value plus, in the
and impaired where necessary.
case of a financial asset not at fair value through profit or loss,
transaction costs.
Inventories
Inventories are measured at the lower of cost and net realiz-
Financial assets are classified, at initial recognition, as financial
assets at amortized cost, at fair value through other compre-
able value except for inventories involved in trading activities,
hensive income and at fair value through profit or loss, on the
which are measured at fair value with recognition through
basis of both Group’s business model and the contractual cash-
profit or loss. Cost is determined on the basis of average
flow characteristics of the instrument.
weighted cost, which includes related ancillary charges. Net
For this purpose, the assessment to determine whether the in-
estimated realizable value is the estimated normal selling
strument gives rise to cash flows that are solely payments of prin-
price net of estimated costs to sell or, where applicable, re-
cipal and interest (SPPI) on the principal amount outstanding is re-
placement cost.
ferred to as the SPPI test and is performed at an instrument level.
For the portion of inventories held to discharge sales that
The Group’s business model for managing financial assets re-
have already been made, the net realizable value is deter-
fers to how it manages its financial assets in order to gener-
mined on the basis of the amount established in the contract
ate cash flows. The business model determines whether cash
of sale.
flows will result from collecting contractual cash flows, selling
Inventories include environmental certificates (green cer-
the financial assets, or both.
189
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements For purposes of subsequent measurement, financial assets are
classified in four categories:
> financial assets measured at amortized cost (debt instru-
ments);
> financial assets at fair value through other comprehensive
income with recycling of cumulative gains and losses (debt
instruments);
Financial assets at fair value through other
comprehensive income (FVOCI) - Equity instruments
This category includes mainly equity investments in unlisted
entities irrevocably designated as such upon initial recognition.
Gains and losses on these financial assets are never recycled
to profit or loss. The Group may transfer the cumulative gain or
loss within equity.
> financial assets designated at fair value through other com-
prehensive income with no recycling of cumulative gains
and losses upon derecognition (equity instruments); and
> financial assets at fair value through profit or loss.
Equity instruments designated at fair value through other com-
prehensive income are not subject to impairment assessment.
Dividends on such investments are recognized in profit or loss
unless they clearly represent a recovery of a part of the cost of
Financial assets measured at amortized cost
This category mainly includes trade receivables, other receiva-
bles and financial receivables.
Financial assets at amortized cost are held within a business
model whose objective is to hold financial assets in order to col-
lect contractual cash flows and whose contractual terms give
rise, on specified dates, to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Such assets are initially recognized at fair value, adjusted for
any transaction costs, and subsequently measured at amor-
tized cost using the effective interest method and are subject
to impairment.
the investment.
Financial assets at fair value through profit or loss
This category mainly includes: securities, equity investments in
other entities, financial investment in fund held for trading and
financial assets designated as at fair value through profit or loss
at initial recognition.
Financial assets at fair value through profit or loss are:
> financial assets with cash flows that are not solely pay-
ments of principal and interest, irrespective of the busi-
ness model;
> financial assets held for trading because acquired or in-
curred principally for the purpose of selling or repurchasing
Gains and losses are recognized in profit or loss when the as-
in short term;
set is derecognized, modified or impaired.
Financial assets at fair value through other
comprehensive income (FVOCI) - Debt instruments
This category mainly includes listed debt securities not classi-
fied as held for trading by the Group’s reinsurance company.
Financial assets at fair value through other comprehensive
income are assets held within a business model whose ob-
jective is achieved by both collecting contractual cash flows
and selling financial assets and whose contractual cash flows
give rise, on specified dates, to cash flows that are solely
payments of principal and interest on the principal amount
outstanding.
Changes in fair value for these financial assets are recognized
in other comprehensive income as well as loss allowances
> debt instruments designated upon initial recognition, un-
der the option allowed by IFRS 9 (fair value option) if doing
so eliminates, or significantly reduces, an accounting mis-
match;
> derivatives, including separated embedded derivatives,
held for trading or not designated as effective hedging in-
struments.
Such financial assets are initially recognized at fair value with
subsequent gains and losses from changes in their fair value
recognized through profit or loss.
This category include also listed equity investments which
the Group had not irrevocably elected to classify at fair value
through other comprehensive income. Dividends on listed eq-
uity investments are also recognized as other income in the
statement of profit or loss when the right of payment has been
that do not reduce the carrying amount of the financial assets.
established.
When a financial asset is derecognized (e.g., at the time of
sale), the cumulative gains and losses previously recognized
in equity (except impairment and foreign exchange gains and
losses to be recognized in profit or loss) are reversed to the
income statement.
Financial assets that qualify as contingent consideration are
also measured at fair value through profit or loss.
Impairment of financial assets
At the end of each reporting date, the Group recognizes a loss
allowance for expected credit losses on trade receivables and
other financial assets measured at amortized cost, debt instru-
190
Consolidated Annual Report 2019 ments measured at fair value through other comprehensive
whose counterparty has a strong financial capacity to meet its
income, contract assets and all other assets in the scope.
contractual cash-flow obligations (e.g., investment grade).
In compliance with IFRS 9, as from January 1, 2018, the Group
adopted a new impairment model based on the determination
of expected credit losses (ECL) using a forward-looking ap-
Cash and cash equivalents
This category includes deposits that are available on demand or
proach. In essence, the model provides for:
at very short term, as well as highly short-term liquid financial
> the application of a single framework for all financial as-
investments that are readily convertible into a known amount
sets;
of cash and which are subject to insignificant risk of changes
> the recognition of expected credit losses on an ongoing
in value.
basis and the updating of the amount of such losses at
In addition, for the purpose of the consolidated statement of
the end of each reporting period, reflecting changes in the
cash flows, cash and cash equivalents do not include bank
credit risk of the financial instrument;
overdrafts at period-end.
> the measurement of expected losses on the basis of rea-
sonable information, obtainable without undue cost, about
past events, current conditions and forecasts of future con-
Financial liabilities at amortized cost
This category mainly includes borrowings, trade payables, fi-
ditions.
nance leases and debt instruments.
For trade receivables, contract assets and lease receivables,
Financial liabilities, other than derivatives, are recognized when
including those with a significant financial component, the
the Group becomes a party to the contractual clauses of the
Group adopts the simplified approach, determining expected
instrument and are initially measured at fair value adjusted for
credit losses over a period corresponding to the entire life of
directly attributable transaction costs. Financial liabilities are
the receivable, generally equal to 12 months.
subsequently measured at amortized cost using the effective
For all financial assets other than trade receivables, contract
interest rate method.
assets and lease receivables, the Group applies the general
approach under IFRS 9, based on the assessment of a signifi-
cant increase in credit risk since initial recognition. Under such
approach, a loss allowance on financial assets is recognized at
Financial liabilities at fair value through profit or
loss
Financial liabilities at fair value through profit or loss include fi-
an amount equal to the lifetime expected credit losses, if the
nancial liabilities held for trading and financial liabilities designat-
credit risk on those financial assets has increased significantly,
ed upon initial recognition as at fair value through profit or loss.
since initial recognition, considering all reasonable and support-
Financial liabilities are classified as held for trading if they are
able information, including also forward-looking inputs.
incurred for the purpose of repurchasing in the near term. This
If at the reporting date, the credit risk on financial assets has
category also includes derivative financial instruments entered
not increased significantly since initial recognition, the Group
into by the Group that are not designated as hedging instru-
measures the loss allowance for those financial assets at an
ments in hedge relationships as defined by IFRS 9. Separat-
amount equal to 12-month expected credit losses.
ed embedded derivatives are also classified as at fair value
For financial assets on which loss allowance equal to lifetime
through profit or loss unless they are designated as effective
expected credit losses has been recognized in the previous
hedging instruments.
reporting date, the Group measures the loss allowance at an
Gains or losses on liabilities at fair value through profit or loss
amount equal to 12-month expected credit losses when signif-
are recognized through profit or loss.
icant increase in credit risk condition is no longer met.
Financial liabilities designated upon initial recognition at fair val-
The Group recognizes in profit or loss, as impairment gain or
ue through profit or loss are designated at the initial date of
loss, the amount of expected credit losses (or reversal) that
recognition, only if the criteria in IFRS 9 are satisfied.
is required to adjust the loss allowance at the reporting date
In this case, the portion of the change in fair value attributa-
to the amount that is required to be recognized in accordance
ble to own credit risk is recognized in other comprehensive
with IFRS 9.
income.
The Group applies the low credit risk exemption, avoiding the rec-
The Group has not designated any financial liability as at fair
ognition of loss allowances at an amount equal to lifetime expect-
value through profit or loss, upon initial recognition.
ed credit losses due to significant increase in credit risk of debt
Financial liabilities that qualify as contingent consideration are
securities at fair value through other comprehensive income,
also measured at fair value through profit or loss.
191
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Derecognition of financial assets and liabilities
Financial assets are derecognized whenever one of the follow-
of their maturity date and the Group intention to hold the finan-
cial instrument till maturity or not.
ing conditions is met:
> the contractual right to receive the cash flows associated
with the asset expires;
> the Group has transferred substantially all the risks and re-
wards associated with the asset, transferring its rights to
receive the cash flows of the asset or assuming a contrac-
tual obligation to pay such cash flows to one or more ben-
eficiaries under a contract that meets the requirements
provided by IFRS 9 (the “pass through test”);
> the Group has not transferred or retained substantially all
the risks and rewards associated with the asset but has
transferred control over the asset.
Financial liabilities are derecognized when they are extin-
guished, i.e. when the contractual obligation has been dis-
charged, cancelled or expired.
When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an ex-
change or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The differ-
Embedded derivatives
An embedded derivative is a derivative included in a “combined”
contract (the so-called “hybrid instrument”) that contains anoth-
er non-derivative contract (the so-called host contract) and gives
rise to some or all of the combined contract’s cash flows.
The main Group’s contracts that may contain embedded deriva-
tives are contracts to buy or sell non-financial items with claus-
es or options that affect the contract price, volume or maturity.
A derivative embedded in a hybrid contract containing a finan-
cial asset host is not accounted for separately. The financial
asset host together with the embedded derivative is required
to be classified in its entirety as a financial asset at fair value
through profit or loss.
Contracts that do not represent financial instruments to be
measured at fair value are analyzed in order to identify any em-
bedded derivatives, which are to be separated and measured at
fair value. This analysis is performed when the Group becomes
party to the contract or when the contract is renegotiated in a
manner that significantly changes the original associated cash
ence in the respective carrying amounts is recognized in profit
flows.
or loss.
Derivative financial instruments
A derivative is a financial instrument or another contract:
> whose value changes in response to the changes in an un-
derlying variable such as an interest rate, commodity or
Embedded derivatives are separated from the host contract
and accounted for as derivatives when:
> host contract is not a financial instrument measured at fair
value through profit or loss;
> the economic risks and characteristics of the embedded
derivative are not closely related to those of the host con-
security price, foreign exchange rate, a price or rate index,
tract;
a receivable rating or other variable;
> that requires no initial net investment, or one that is small-
er than would be required for a contract with similar re-
sponse to changes in market factors;
> that is settled at a future date.
Derivative instruments are classified as financial assets or li-
> a separate contract with the same terms as the embedded
derivative would meet the definition of a derivative.
Embedded derivatives that are separated from the host con-
tract are recognized in the consolidated financial statements
at fair value with changes recognized in profit or loss (except
when the embedded derivative is part of a designated hedging
abilities depending on the positive or negative fair value and
relationship).
they are classified as “held for trading” within “Other business
models” and measured at fair value through profit or loss, ex-
cept for those designated as effective hedging instruments.
For more details about hedge accounting, please refer to note
46 “Derivatives and hedge accounting”.
All derivatives held for trading are classified as current assets
or liabilities.
Contracts to buy or sell non-financial items
In general, contracts to buy or sell non-financial items that are
entered into and continue to be held for receipt or delivery in
accordance with the Group’s normal expected purchase, sale
or usage requirements are out of the scope of IFRS 9 and then
recognized as executory contracts, according to the “own use
Derivatives not held for trading purposes, but measured at fair
exemption”.
value through profit or loss since they do not qualify for hedge
accounting, and derivatives designated as effective hedging in-
struments are classified as current or not current on the basis
Such contracts are recognized as derivatives and, as a conse-
quence, at fair value through profit or loss only if:
> they can be settled net in cash; and
192
Consolidated Annual Report 2019 > they are not entered into in accordance with the Group’s
interest in its former subsidiary after the sale.
expected purchase, sale or usage requirements.
The Group applies these classification criteria as envisaged in
A contract to buy or sell non-financial items is classified as
IFRS 5 to an investment, or a portion of an investment, in an as-
“normal purchase or sale” if it is entered into:
sociate or a joint venture. Any retained portion of an investment
> for the purpose of the physical delivery;
in an associate or a joint venture that has not been classified
> in accordance with the entity’s expected purchase, sale or
as held for sale is accounted for using the equity method until
usage requirements.
disposal of the portion that is classified as held for sale takes
The Group analyses all contracts to buy or sell non-financial
place.
assets, with a specific focus on forward purchases and sales
Non-current assets (or disposal groups) and liabilities of dispos-
of electricity and energy commodities, in order to determine
al groups classified as held for sale are presented separately
if they shall be classified and treated according to IFRS 9 or if
from other assets and liabilities in the balance sheet.
they have been entered into for “own use”.
The amounts presented for non-current assets or for the as-
Offsetting financial assets and liabilities
The Group offsets financial assets and liabilities when:
sets and liabilities of disposal groups classified as held for sale
are not reclassified or re-presented for prior periods presented.
Immediately before the initial classification of non-current as-
> there is a legally enforceable right to set off the recognized
sets (or disposal groups) as held for sale, the carrying amounts
amounts; and
of such assets (or disposal groups) are measured in accordance
> there is the intention of either to settle on a net basis, or
with the IFRS/IAS applicable to the specific assets or liabilities.
to realize the asset and settle the liability simultaneously.
Non-current assets (or disposal groups) classified as held for
sale are measured at the lower of their carrying amount and
Hyperinflation
In a hyperinflationary economy, the Group adjusts non-mon-
fair value less costs to sell. Impairment losses for any initial
or subsequent write-down of the assets (or disposal groups)
etary items, shareholders’ equity and items deriving from in-
to fair value less costs to sell and gains for their reversals are
dex-linked contracts up to the limit of recoverable value, using
included in profit or loss from continuing operations.
a price index that reflects changes in general purchasing power.
Non-current assets are not depreciated (or amortized) while
The effects of initial application are recognized in equity net
they are classified as held for sale or while they are part of a
of tax effects. Conversely, during the hyperinflationary period
disposal group classified as held for sale.
(until it ceases), the result (gain or loss) of adjustments is rec-
If the classification criteria are no longer met, the Group ceases
ognized in profit or loss and disclosed separately in financial
to classify non-current assets (or disposal group) as held for
income and expense.
sale. In that case they are measured at the lower of:
Starting from 2018, this standard applies to the Group’s trans-
> the carrying amount before the asset (or disposal group)
actions in Argentina, whose economy has been declared hy-
was classified as held for sale, adjusted for any depreci-
perinflationary from July 1, 2018.
Non-current assets (or disposal
groups) classified as held for sale and
discontinued operations
Non-current assets (or disposal groups) are classified as held
ation, amortization or revaluations that would have been
recognized if the asset (or disposal group) had not been
classified as held for sale; and
> the recoverable amount, which is equal to the greater of
its fair value net of costs of disposal and its value in use,
as calculated at the date of the subsequent decision not
for sale if their carrying amount will be recovered principally
to sell.
through a sale transaction, rather than through continuing use.
Any adjustment to the carrying amount of a non-current asset
This classification criteria is applicable only when non-current
that ceases to be classified as held for sale is included in profit
assets (or disposal groups) are available in their present condi-
or loss from continuing operations.
tion for immediate sale and the sale is highly probable.
A discontinued operation is a component of the Group that ei-
If the Group is committed to a sale plan involving loss of control
ther has been disposed of, or is classified as held for sale, and:
of a subsidiary and the requirements provided for under IFRS 5
> represents a separate major line of business or geographi-
are met, all the assets and liabilities of that subsidiary are clas-
cal area of operations;
sified as held for sale when the classification criteria are met,
> is part of a single coordinated plan to dispose of a separate
regardless of whether the Group will retain a non-controlling
major line of business or geographical area of operations; or
193
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements > is a subsidiary acquired exclusively with a view to resale.
ating expenses, as they represent “system charges” conse-
The Group presents, in a separate line item of the income
quent upon compliance with a regulatory requirement.
statement, a single amount comprising the total of:
> the post-tax profit or loss of discontinued operations; and
> the post-tax gain or loss recognized on the measurement to
Employee benefits
Liabilities related to employee benefits paid upon or after ceas-
fair value less costs to sell or on the disposal of the assets
ing employment in connection with defined benefit plans or
or disposal groups constituting the discontinued operation.
other long-term benefits accrued during the employment pe-
The corresponding amount is re-presented in the income state-
riod are determined separately for each plan, using actuarial
ment for prior periods presented in the financial statements,
assumptions to estimate the amount of the future benefits
so that the disclosures relate to all operations that are discon-
that employees have accrued at the balance-sheet date (the
tinued by the end of the current reporting period. If the Group
projected unit credit method). More specifically, the present
ceases to classify a component as held for sale, the results
value of the defined benefit obligation is calculated by using a
of the component previously presented in discontinued oper-
discount rate determined on the basis of market yields at the
ations are reclassified and included in income from continuing
end of the reporting period on high-quality corporate bonds. If
operations for all periods presented.
there is no deep market for high-quality corporate bonds in the
Environmental certificates
Some Group companies are affected by national regulations
yield of government securities is used.
The liability is recognized on an accruals basis over the vesting
governing green certificates and energy efficiency certifi-
period of the related rights. These appraisals are performed by
currency in which the bond is denominated, the corresponding
cates (so-called white certificates), as well as the European
independent actuaries.
“Emissions Trading System”.
If the value of plan assets exceeds the present value of the
Green certificates, which now only exist outside of Italy,
related defined benefit obligation, the surplus (up to the limit of
accrued in proportion to electricity generated by renewable
any cap) is recognized as an asset.
energy plants and energy efficiency certificates accrued in
As regards the liabilities/(assets) of defined benefit plans, the
proportion to energy savings achieved that have been certi-
cumulative actuarial gains and losses from the actuarial meas-
fied by the competent authority are treated as non-monetary
urement of the liabilities, the return on the plan assets (net
government operating grants and are recognized at fair value,
of the associated interest income) and the effect of the asset
under other operating income, with recognition of an asset
ceiling (net of the associated interest income) are recognized
under other non-financial assets, if the certificates are not
in other comprehensive income when they occur. For other
yet credited to the ownership account, or under inventories,
long-term benefits, the related actuarial gains and losses are
if the certificates have already been credited to that account.
recognized through profit or loss.
At the time the certificates are credited to the ownership ac-
In the event of a change being made to an existing defined
count, they are reclassified from other assets to inventories.
benefit plan or the introduction of a new plan, any past service
Revenue from the sale of such certificates are recognized
cost is recognized immediately in profit or loss.
under revenue from contracts with customers, with a corre-
Employees are also enrolled in defined contribution plans un-
sponding decrease in inventories.
der which the Group pays fixed contributions to a separate
For the purposes of accounting for charges arising from reg-
entity (a fund) and has no legal or constructive obligation to pay
ulatory requirements concerning green certificates, energy
efficiency certificates and CO2 emissions allowances, the
Group uses the “net liability approach”.
further contributions if the fund does not hold sufficient assets
to pay all employee benefits relating to employee service in
the current and prior periods. Such plans are usually aimed to
Under this accounting policy, environmental certificates re-
supplement pension benefits due to employees post-employ-
ceived free of charge and those self-produced as a result of
ment. The related costs are recognized in income statement
Group’s operations that will be used for compliance purpos-
on the basis of the amount of contributions paid in the period.
es are recognized at nominal value (nil). In addition, charges
incurred for obtaining (in the market or in some other trans-
action for consideration) any missing certificates to fulfil com-
Termination benefits
Liabilities for benefits due to employees for the early termina-
pliance requirements for the reporting period are recognized
tion of the employment relationship, both for a Group’s deci-
through profit or loss on an accruals basis under other oper-
sion and for an employee’s decision to accept voluntary redun-
194
Consolidated Annual Report 2019 dancy in exchange for these benefits, are recognized at the
customers in the scope of IFRS 15, in accordance with the
earlier of the following dates:
contract, the law or its customary business practices. In this
> when the entity can no longer withdraw its offer of bene-
case, the Group assesses whether the warranty provides the
fits; and
customer with assurance that the related product will function
> when the entity recognizes a cost for a restructuring that
as the parties intended because it complies with agreed-upon
is within the scope of IAS 37 and involves the payment of
specifications or whether the warranty provides the customer
termination benefits.
with a service in addition to the assurance that the product
The liabilities are measured on the basis of the nature of the
complies with agreed-upon specifications.
employee benefits. More specifically, when the benefits repre-
After the assessment, if the Group establishes that an assur-
sent an enhancement of other post-employment benefits, the
ance warranty is provided, it recognizes a separate warranty
associated liability is measured in accordance with the rules
liability and corresponding expense when transferring the prod-
governing that type of benefits. Otherwise, if the termination
uct to the customer, as additional costs of providing goods or
benefits due to employees are expected to be settled wholly
services, without attributing any of the transaction price (and
before 12 months after the end of the annual reporting peri-
therefore revenue) to the warranty. The liability is measured
od, the entity measures the liability in accordance with the re-
and presented as a provision.
quirements for short-term employee benefits; if they are not
Otherwise, if the Group determines that a service warranty
expected to be settled wholly before 12 months after the end
is provided, it accounts for the promised warranty as a perfor-
of the annual reporting period, the entity measures the liability
mance obligation in accordance with IFRS 15, recognizing the
in accordance with the requirements for other long-term em-
contract liability as revenue over the period the warranty ser-
ployee benefits.
Provisions for risks and charges
Provisions are recognized where there is a legal or constructive
vice is provided and the costs associated as they are incurred.
Finally, if the warranty includes both an assurance element and
a service element and the Group cannot reasonably account
for them separately, then it accounts for both of the warranties
obligation as a result of a past event at the end of the report-
together as a single performance obligation.
ing period, the settlement of which is expected to result in an
In the case of contracts in which the unavoidable costs of meet-
outflow of resources whose amount can be reliably estimated.
ing the obligations under the contract exceed the economic
Where the impact is significant, the accruals are determined by
benefits expected to be received under it (onerous contracts),
discounting expected future cash flows using a pre-tax discount
the Group recognizes a provision as the lower of the costs of
rate that reflects the current market assessment of the time val-
fulfilling the obligation that exceed the economic benefits ex-
ue of money and, if applicable, the risks specific to the liability.
pected to be received under the contract and any compensa-
If the provision is discounted, the periodic adjustment of the
tion or penalty arising from failure to fulfil it.
present value for the time factor is recognized as a financial
Changes in estimates of accruals to the provision are rec-
expense.
ognized in the income statement in the period in which the
When the Group expects some or all of a provision to be reim-
changes occur, with the exception of those in the costs of de-
bursed, the reimbursement is recognized as a separate asset,
commissioning, dismantling and/or restoration resulting from
but only when the reimbursement is virtually certain.
changes in the timetable and costs necessary to extinguish the
Where the liability relates to decommissioning and/or site res-
obligation or from a change in the discount rate. These changes
toration in respect of property, plant and equipment, the initial
increase or decrease the value of the related assets and are
recognition of the provision is made against the related asset
taken to the income statement through depreciation. Where
and the expense is then recognized in profit or loss through the
they increase the value of the assets, it is also determined
depreciation of the asset involved.
whether the new carrying amount of the assets is fully recov-
Where the liability regards the treatment and storage of nucle-
erable. If this is not the case, a loss equal to the unrecoverable
ar waste and other radioactive materials, the provision is recog-
amount is recognized in the income statement.
nized against the related operating costs.
Decreases in estimates are recognized up to the carrying
Provisions do not include liabilities for uncertain income tax
amount of the assets. Any excess is recognized immediately
treatments that are recognized as tax liabilities.
in the income statement.
The Group could provide a warranty in connection with the sale
For more information on the estimation criteria adopted in de-
of a product (whether a good or service) from contracts with
termining provisions for dismantling and/or restoration of pro-
195
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements perty, plant and equipment, especially those associated with
consideration, non-cash consideration received from a
nuclear power plants, please refer to the paragraph “Use of
customer, consideration payable to a customer and a sig-
estimates”.
nificant financing component;
> allocate the transaction price (step 4).
Revenue from contracts with
customers
The Group recognizes revenue from contracts with customers
The Group allocates the transaction price at contract incep-
tion to each separate performance obligation to depict the
amount of consideration to which the Group expects to be
in order to represent the transfer of promised goods or servic-
entitled in exchange for transferring the promised goods
es to the customers at an amount that reflects the considera-
or services.
tion at which the Group expects to be entitled in exchange for
When the contract includes a customer option to acquire
those goods or services.
additional goods or services that represents a materi-
The Group applies this core principle using a five-step model:
al right, the Group allocates the transaction price to this
> identify the contract with the customer (step 1).
performance obligation (i.e., the option) and defers the
The Group applies IFRS 15 to contracts with customers in
relative revenue until those future goods or services are
the scope of the standard when the contract is legally en-
transferred or the option expires.
forceable and all the criteria envisaged for step 1 are met.
The Group generally allocates the transaction price on the
If the criteria are not met, any consideration received from
basis of the relative stand-alone selling price of each dis-
the customer is generally recognized as an advance;
tinct good or service promised in the contract (that is, the
> identify the performance obligations in the contract (step 2).
price at which the Group would sell that good or service
The Group identifies all goods or services promised in the
separately to the customer);
contract, separating them into performance obligations to
> recognize revenue (step 5).
account for separately if they are both: capable of being
The Group recognizes revenue when (or as) each perfor-
distinct and distinct in the context of the contract.
mance obligation is satisfied by transferring the promised
As an exception, the Group accounts for a single perfor-
good or service to the customer, which is when the cus-
mance obligation a series of distinct goods or services that
tomer obtains control of the good or service.
are substantially the same and that have the same pattern
As a first step, the Group determines if one of the over-
of transfer to the customer over time.
time criteria is met.
In assessing the existence and the nature of the perfor-
For each performance obligation satisfied over time, the
mance obligations, the Group considers all contract’s fea-
Group recognizes revenue over time by measuring pro-
tures as mentioned in step 1.
gress toward the complete satisfaction of that performance
For each distinct good or service identified, the Group de-
obligation using an output method or an input method and
termines whether it acts as a principal or agent, respective-
applies a single method of measuring progress from con-
ly if it controls or not the specified good or service that is
tract inception until full satisfaction and to similar perfor-
promised to the customer before its control is transferred
mance obligations and in similar circumstances.
to the customer. When the Group acts as agent, it recog-
When the Group cannot reasonably measure the progress,
nizes revenue on a net basis, corresponding to any fee or
it recognizes revenue only to the extent of the costs in-
commission to which it expects to be entitled;
curred that are considered recoverable.
> determine the transaction price (step 3).
If the performance obligation is not satisfied over time, the
The transaction price represents the amount of considera-
Group determines the point in time at which the customer
tion to which the Group expects to be entitled in exchange
obtains the control, considering whether the indicators of
for transferring goods or services to a customer, excluding
the transfer of control collectively indicate that the custom-
amounts collected on behalf of third parties (e.g., some
er has obtained control.
sale taxes and value-added taxes).
Depending on the type of transaction, the broad criteria
The Group determines the transaction price at inception of
used under IFRS 15 are summarized below:
the contract and updates it at each reporting period for any
- revenue from the sale of goods is recognized at the
changes in circumstances.
point in time at which the customer obtains the control
When the Group determines the transaction price, it con-
of goods if the Group considers that the sale of goods
siders whether the transaction price includes variable
is satisfied at a point in time;
196
Consolidated Annual Report 2019 - revenue from providing services is recognized on the
Government grants, including non-monetary grants at fair val-
basis of the progress towards complete satisfaction of
ue, are recognized where there is reasonable assurance that
the performance obligation measured with an appropri-
they will be received and that the Group will comply with all
ate method that better depicts this progress if the Group
conditions attaching to them as set by the government, gov-
considers that the performance obligation is satisfied
ernment agencies and similar bodies, whether local, national
over time. The cost incurred method (cost-to-cost meth-
or international.
od) is considered appropriate for measuring progress, ex-
When loans are provided by governments at a below-market
cept when specific contract analysis suggest the use of
rate of interest, the benefit is regarded as a government grant.
an alternative method, which better depicts the Group’s
The loan is initially recognized and measured at fair value and
performance obligation fulfilled at the reporting date.
the government grant is measured as the difference between
The Group does not disclose the information about the remaining
the initial carrying amount of the loan and the funds received.
performance obligations in existing contracts if the performance
The loan is subsequently measured in accordance with the re-
obligation is part of a contract that has an original expected du-
quirements for financial liabilities.
ration of one year or less and if the Group recognizes revenue in
Government grants are recognized in profit or loss on a sys-
the amount to which it has a right to invoice the customer.
tematic basis over the periods in which the Group recognizes
as expenses the costs that the grants are intended to com-
Further details on the application of this revenue recognition
pensate.
model are provided in the paragraph “Management judg-
Where the Group receives government grants in the form of
ments” and in note 8.a “Revenue from sales and services”.
a transfer of a non-monetary asset for the use of the Group, it
If the Group performs by transferring goods or services to a
accounts for both the grant and the asset at the fair value of the
customer before the customer pays consideration or before
non-monetary asset received at the date of the transfer.
payment is due, it recognizes a contract asset relating to the
Grants related to long-lived assets, including non-monetary
right to consideration in exchange for goods or services trans-
grants at fair value, i.e. those received to purchase, build or
ferred to the customer.
otherwise acquire non-current assets (for example, an item
If a customer pays consideration before the Group transfers
of property, plant and equipment or an intangible asset), are
goods or services to the customer, the Group recognizes a
recognized on a deferred basis under other liabilities and are
contract liability when the payment is made (or the payment is
credited to profit or loss on a straight-line basis over the useful
due) that is recognized as revenue when the Group performs
life of the asset.
under the contract.
Other revenue
The Group recognizes revenue other than those related to con-
Financial income and expense from
derivatives
Financial income and expense from derivatives includes:
tracts with customers mainly referring to:
> income and expense from derivatives measured at fair val-
> revenue from contracts to sell energy commodities at a
ue through profit or loss on interest rate and foreign ex-
future date and a fixed price with physical settlement that
change risk;
do not meet the own use exemption and therefore is rec-
> income and expense from fair value hedge derivatives on
ognized according to IFRS 9;
interest rate risk;
> results from changes in fair value of contracts to sell at
> income and expense from cash flow hedge derivatives on
a future date energy commodities with physical delivery
interest rate and foreign exchange risks.
under IFRS 9;
> operating lease revenue accounted for on an accrual ba-
sis in accordance with the substance of the relevant lease
agreement.
Other operating income
Other operating income primarily include gains on the disposal
Other financial income and expense
For all financial assets and liabilities measured at amortized
cost and interest-bearing financial assets classified as at fair
value through other comprehensive income, interest income
and expense is recorded using the effective interest rate
method. The effective interest rate is the rate that exactly dis-
of assets that are not an output of the Group’s ordinary activi-
counts the estimated future cash payments or receipts over
ties and government grants.
the expected life of the financial instrument or a shorter period,
197
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements where appropriate, to the net carrying amount of the financial
Deferred tax assets are recognized for all deductible tempo-
asset or liability.
rary differences, the carry forward of unused tax credits and
Interest income is recognized to the extent that it is proba-
any unused tax losses, when recovery is probable, i.e. when
ble that the economic benefits will flow to the Group and the
an entity expects to have sufficient future taxable income to
amount can be reliably measured.
recover the asset.
Other financial income and expense include also changes in
The recoverability of deferred tax assets is reviewed at each
the fair value of financial instruments other than derivatives.
period-end.
Dividends
Dividends are recognized when the unconditional right to re-
porting date and they are recognized to the extent that it has
become probable that future taxable profits will allow the de-
Unrecognized deferred tax assets are re-assessed at each re-
ceive payment is established.
ferred tax asset to be recovered.
Dividends and interim dividends payable to a company’s share-
Deferred taxes are recognized in profit or loss, with the excep-
holders are recognized as changes in equity in the period in
tion of those in respect of items recognized outside profit or
which they are approved by the Shareholders’ Meeting and the
loss that are recognized in equity.
Board of Directors, respectively.
Income taxes
Deferred tax assets and deferred tax liabilities are offset
against current tax liabilities related to income taxes levied by
the same taxation authority that arise at the time of reversal if
a legally enforceable right to set-off exists.
Current income taxes
Current income taxes for the period, which are recognized un-
der “income tax payable” net of payments on account, or un-
Uncertainty over income tax treatments
In defining ‘uncertainty’, it shall be considered whether a par-
der “tax receivable” where there is a credit balance, are deter-
ticular tax treatment will be accepted by the relevant taxation
mined using an estimate of taxable income and in conformity
authority. If it is deemed probable that the tax treatment will be
with the applicable regulations.
accepted (where the term ‘probable’ is defined as ‘more likely
In particular, such payables and receivables are determined us-
than not’), then the Group recognizes and measures its cur-
ing the tax rates and tax laws that are enacted or substantive-
rent/deferred tax asset or liabilities applying the requirements
ly enacted by the end of the reporting period in the countries
in IAS 12.
where taxable income has been generated.
Conversely, when there is uncertainty over income tax treat-
Current income taxes are recognized in profit or loss with the
ments, the uncertainty should be reflected in the manner that
exception of current income taxes related to items recognized
better predicts the resolution of the uncertain tax treatment.
outside profit or loss that are recognized in equity.
The Group determines whether to consider each uncertain tax
treatment separately or together with one or more other uncer-
Deferred tax
Deferred tax liabilities and assets are calculated on the tempo-
tain tax treatments based on which approach provides better
predictions of the resolution of the uncertainty. In assessing
rary differences between the carrying amounts of assets and
whether and how the uncertainty affects the tax treatment,
liabilities in the financial statements and their corresponding
the Group assumes that a taxation authority will accept or not
values recognized for tax purposes on the basis of tax rates in
an uncertain tax treatment supposing that the taxation author-
effect on the date the temporary difference will reverse, which
ity will examine amounts it has a right to examine and have
is determined on the basis of tax rates that are enacted or sub-
full knowledge of all related information when making those
stantively enacted as at the end of the reporting period.
examinations. The Group reflects the effect of uncertainty in
Deferred tax liabilities are recognized for all taxable temporary
accounting for current and deferred tax when it concludes it is
differences, except when the deferred tax liability arises from
not probable that the taxation authority will accept an uncer-
the initial recognition of goodwill or in respect of taxable tem-
tain tax treatment, using the expected value or the most likely
porary differences associated with investments in subsidiar-
amount, whichever method better predicts the resolution of
ies, associates and interests in joint arrangements, when the
the uncertainty.
Group can control the timing of the reversal of the temporary
The Group applies significant judgment in identifying uncertain-
differences and it is probable that the temporary differences
ties over income tax treatments and reassesses any judgments
will not reverse in the foreseeable future.
and estimates made if a change in facts and circumstances
198
Consolidated Annual Report 2019 might change a conclusions about the acceptability of a tax
come taxes, the Group presents uncertain tax liabilities/assets
treatment or the estimate of the effect of uncertainty, or both.
as current tax liabilities/assets or deferred tax liabilities/assets.
Since uncertain income tax positions meet the definition of in-
3. New and amended standards
and interpretations
The Group has applied the following standards, interpreta-
cial Instruments” to non-current interests in associates and
tions and amendments that took effect as from January 1,
joint ventures to which the equity method is not applied.
2019.
The application of these amendments did not have a signif-
> “IFRS 16 - Leases”, issued on January 2016, which replac-
icant impact in the consolidated financial statements.
es “IAS 17 - Leases”, “IFRIC 4 - Determining Whether an
> “IFRIC 23 - Uncertainty over Income Tax Treatments”, is-
Arrangement Contains a Lease”, “SIC 15 - Operating Leas-
sued in June 2017; the interpretation clarifies how to apply
es-Incentives” and “SIC 27 - Evaluating the Substance of
the recognition and measurement requirements in IAS 12
Transactions Involving the Legal Form of a Lease”.
when there is uncertainty over income tax treatments.
The standard sets out the principles for the recognition,
The application of this interpretation did not have a signifi-
measurement, presentation and disclosure of leases and
cant impact in the consolidated financial statements.
requires lessees to account for all leases under a single
> “Annual improvements to IFRSs 2015-2017 cycle”, issued in
on-balance sheet model similar to the accounting for fi-
December 2017; the document contains formal modifica-
nance leases under IAS 17.
tions and clarifications of existing standards. More specifi-
The nature and effect of the changes as a result of the
cally, the following standards were amended:
adoption of this new accounting standard are described in
- “IFRS 3 - Business Combinations”; the amendments
note 4 “Changes in accounting policies and disclosures”.
clarify that, when an entity obtains control of a business
> “Amendments to IAS 19 - Plan Amendment, Curtailment or
that is a joint operation, it applies the requirements for
Settlement”, issued in February 2018.
a business combination achieved in stages, including
When an amendment, curtailment or settlement of a de-
remeasuring its entire previously held interests in the
fined benefit plan occurs during the annual reporting peri-
assets of the joint operation at the acquisition-date fair
od, the amendments specify that, for the remainder of the
value. These amendments apply to business combina-
annual reporting period, an entity shall determine:
tions for which the acquisition date is on or after Janu-
- current service cost using the actuarial assumptions
ary 1, 2019;
used to remeasure the net defined benefit liability/(as-
- “IFRS 11 - Joint Arrangements”; the amendments clari-
set); and
fy that when an entity obtains joint control of a joint op-
- net interest using the net defined benefit liability/(as-
eration that constitutes a business (as defined in IFRS
set) remeasured and the discount rate used to remeas-
3), it should not remeasure its previously held interests
ure the net defined benefit liability/(asset).
in that joint operation. These amendments apply to
The amendments also clarify that the past service cost
transactions in which it obtains joint control on or after
(or the gain/loss on settlement) is calculated ignoring the
January 1, 2019;
effect of the asset ceiling that is determined in a second
- “IAS 12 - Income Taxes”; the amendments clarify that
step and is recognized in the normal manner in other com-
the income tax consequences when the entity recog-
prehensive income. The amendments do not address the
nizes a liability to pay a dividend are linked more directly
accounting for “significant market fluctuations” in the ab-
to past transactions or events that generated distribut-
sence of a plan amendment, curtailment or settlement.
able profits than distributions to owners. Therefore, the
The application of these amendments did not have a signif-
related income tax consequences of dividends shall be
icant impact in the consolidated financial statements.
recognized in income statement, other comprehensive
> “Amendments to IAS 28 - Long-term Interests in Asso-
income or equity according to where the entity original-
ciates and Joint Ventures”, issued in October 2017; the
ly recognized those past transactions or events;
amendments clarify that an entity applies “IFRS 9 - Finan-
- “IAS 23 - Borrowing Costs”; the amendments clarify
199
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements that an entity treats as part of general borrowings any
apply to borrowing costs incurred on or after January
specific borrowing, originally made to develop a qualify-
1, 2019.
ing asset, that remain outstanding when substantially
The application of these amendments did not have a signif-
all the activities necessary to prepare that asset for its
icant impact in the consolidated financial statements.
intended use or sale are complete. These amendments
4. Changes in accounting policies
and disclosures
4.1 Application of “IFRS 16 -
Leases”
Transition disclosures
The Group adopted “IFRS 16 - Leases” using the modified
adjusted by the amount of any prepaid or accrued lease
payments relating to that lease recognized in the balance
sheet immediately before the date of initial application.
Lease liabilities were recognized based on the present val-
ue of the remaining lease payments, discounted using the
incremental borrowing rate of the Group’s lessee entity as
retrospective method, with the date of initial application on
of January 1, 2019.
January 1, 2019; under this method, the standard is applied
The Group used the following practical expedients when ap-
retrospectively with the cumulative effect of initial applying
plying IFRS 16 to leases previously classified as an operating
IFRS 16 recognized at the date of initial application. According-
lease under IAS 17:
ly, the comparative information (for year 2018) has not been
> relied on its assessment of whether leases are onerous
restated and it is presented, as previously reported, under IAS
applying IAS 37 immediately before the date of initial ap-
17 and related Interpretations. Additionally, the disclosure re-
plication and adjusted the right-of-use asset at the date of
quirements in IFRS 16 have not been applied to comparative
initial application by the amount of any provision for on-
information.
erous leases recognized immediately before the date of
On transition to IFRS 16, the Group elected to use the transi-
initial application;
tion practical expedient to not reassess whether a contract is,
> applied the short-term leases exemption to leases with
or contains, a lease, at January 1, 2019. Therefore, the Group
lease terms ending within 12 months of the date of initial
applied the standard only to contracts that were previously
application;
identified as leases applying IAS 17 and IFRIC 4 at the date of
> applied the low-value assets exemption for contracts
initial application.
At transition, the Group:
whose amounts are considered not material;
> used hindsight, particularly to determine the lease term
> did not change the carrying amounts of recognized assets
for contracts that contain options to extend or terminate
and liabilities at the date of initial application for leases pre-
a lease.
viously classified as finance leases under IAS 17;
IFRS 16 affects substantially all of the Group entities that act
> recognized right-of-use assets and lease liabilities for
as a lessee. The most significant cases affected by the new
those leases previously classified as an operating lease
provisions of IFRS 16 regard the right-of-use in respect of
applying IAS 17, except for leases of low-value assets,
buildings, ground rights of renewable energy plants, cars and
whose amount is considered not material, for which is
other means of transportation (such as shipping) and other
not required to make any adjustments on transition. The
technical machinery.
Group mainly recognized a right-of-use asset at the date of
The Group is not required to make any adjustments on transi-
initial application in an amount equal to the lease liability,
tion for leases in which it acts as a lessor.
200
Consolidated Annual Report 2019 Millions of euro
ASSETS
Non-current assets
Property, plant and equipment
Investment property
Intangible assets
Goodwill
Deferred tax assets
Equity investments accounted for using the equity method
Derivatives
Non-current contract assets
Other non-current financial assets
Other non-current assets
Current assets
Inventories
Trade receivables
Current contract assets
Income tax credits
Derivatives
Other current financial assets
Other current assets
Cash and cash equivalents
Assets classified as held for sale
TOTAL ASSETS
at Dec. 31, 2018
IFRS 16 effect
at Jan. 1, 2019
76,631
135
19,014
14,273
8,305
2,099
1,005
346
5,769
1,272
1,370
-
-
-
-
-
-
-
-
-
78,001
135
19,014
14,273
8,305
2,099
1,005
346
5,769
1,272
[Total]
128,849
1,370
130,219
2,818
13,587
135
660
3,914
5,160
2,983
6,630
35,887
688
165,424
-
-
-
-
-
-
-
-
-
2
1,372
2,818
13,587
135
660
3,914
5,160
2,983
6,630
35,887
690
166,796
[Total]
201
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
LIABILITIES AND SHAREHOLDERS’ EQUITY
at Dec. 31, 2018
IFRS 16 effect
at Jan. 1, 2019
Equity attributable to shareholders of the Parent Company
Share capital
Other reserves
Retained earnings/(loss carried forward)
Non-controlling interests
Total shareholders’ equity
Non-current liabilities
Long-term borrowings
Employee benefits
Provisions for risks and charges (non-current portion)
Deferred tax liabilities
Derivatives
Non-current contract liabilities
Other non-current liabilities
Current liabilities
Short-term borrowings
Current portion of long-term borrowings
Provisions for risks and charges (current portion)
Trade payables
Income tax payable
Derivatives
Current contract liabilities
Other current financial liabilities
Other current liabilities
Liabilities included in disposal groups classified as held for sale
Total liabilities
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
[Total]
Millions of euro
Total costs (1)
Operating income
Financial expense
Income before taxes
Income taxes
Net income for the period (shareholders of the Parent Company
and non-controlling interests)
[Total]
10,167
1,700
19,853
31,720
16,132
47,852
-
-
-
-
-
-
10,167
1,700
19,853
31,720
16,132
47,852
48,983
1,311
50,294
3,187
5,181
8,650
2,609
6,306
1,901
-
-
-
-
-
-
3,187
5,181
8,650
2,609
6,306
1,901
[Total]
76,817
1,311
78,128
3,616
3,367
1,312
13,387
333
4,343
1,095
788
12,107
40,348
407
117,572
165,424
-
59
-
-
-
-
-
-
-
59
2
1,372
1,372
3,616
3,426
1,312
13,387
333
4,343
1,095
788
12,107
40,407
409
118,944
166,796
2019
IFRS 16 effect
(21)
21
54
(33)
(9)
(24)
(1) The figure reflects a decrease of €224 million in costs for services, leases and rentals and an increase of €203 million in depreciation and amortization.
202
Consolidated Annual Report 2019 IFRS 16 reconciliation
Millions of euro
Minimum payments due in respect of operating leases at Dec. 31, 2018
(Discounting effect)
(Low-value lease exemption)
(Shot-term lease exemption)
Finance lease liabilities at Dec. 31, 2018
Payments due in respect of leases for renewal periods not included in
operating lease commitments at Dec. 31, 2018
Lease liabilities at Jan. 1, 2019
2,441
(1,051)
(1)
(19)
657
-
2,027
4.2 Argentina - Hyperinflationary
economy: impact of the
application of IAS 29
As from July 1, 2018, the Argentine economy has been con-
sidered hyperinflationary based on the criteria established
by “IAS 29 - Financial Reporting in Hyperinflationary Econo-
mies”. This designation is determined following an assess-
ment of a series of qualitative and quantitative circumstanc-
es, including the presence of a cumulative inflation rate of
In order to also take account of the impact of hyperinfla-
tion on the exchange rate of the local currency, the income
statement balances expressed in the hyperinflationary cur-
rency have been translated into the Group’s presentation
currency (euro) applying, in accordance with IAS 21, the
closing exchange rate rather than the average rate for the
period in order to adjust these amounts to current values.
The cumulative changes in the general price indices at De-
cember 31, 2018 and December 31, 2019 are shown in the
more than 100% over the previous three years.
following table:
For the purposes of preparing the consolidated financial
statements and in accordance with IAS 29, certain items of
the balance sheets of the investees in Argentina have been
remeasured by applying the general consumer price index
to historical data in order to reflect changes in the purchas-
ing power of the Argentine peso at the reporting date for
those companies.
Bearing in mind that the Enel Group acquired control of the
Argentine companies on June 25, 2009, the remeasurement
of the non-monetary balance-sheet figures was conducted
by applying the inflation indices starting from that date. In
addition to being already reflected in the opening balance
sheet, the accounting effects of that remeasurement also
include changes during the period. More specifically, the
effect of the remeasurement of non-monetary items, the
components of equity and the components of the income
statement recognized in 2019 was recognized in a specific
line of the income statement under financial income and
expense. The associated tax effect was recognized in taxes
for the period.
Periods
From July 1, 2009 to December 31,
2018
From January 1, 2019 to December 31,
2019
Cumulative change in general
consumer price index
346.30%
54.46%
In 2019, the application of IAS 29 generated net financial in-
come (gross of tax) of €95 million.
The following tables report the effects of IAS 29 on the bal-
ance at December 31, 2019 and the impact of hyperinflation
on the main income statement items for 2019, differentiating
between that concerning the revaluation on the basis of the
general consumer price index and that due to the application
of the closing exchange rate rather than the average exchange
rate for the period in accordance with the provisions of IAS 21
for hyperinflationary economies.
203
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
Total assets
Total liabilities
Shareholders’ equity
Cumulative hyperinflation
effect at Dec. 31, 2018
Hyperinflation effect
for the period Exchange differences
Cumulative hyperinflation
effect at Dec. 31, 2019
765
197
568
368
38
330 (1)
(276)
(71)
(205)
857
164
693
(1) The figure includes net income for 2019, equal to €56 million.
Millions of euro
Revenue
Costs
Operating income
Net financial income/(expense)
Net income/(expense) from hyperinflation
Income before taxes
Income taxes
Net income for the year (shareholders of the Parent
Company and non-controlling interests)
Attributable to shareholders of the Parent Company
Attributable to non-controlling interests
IAS 29 effect
IAS 21 effect
Total effect
297
306 (1)
(9)
(4)
95
82
26
56
39
17
(325)
(236) (2)
(89)
(17)
-
(106)
(18)
(88)
(32)
(56)
(28)
70
(98)
(21)
95
(24)
8
(32)
7
(39)
(1) Includes impact on depreciation, amortization and impairment losses of €85 million.
(2) Includes impact on depreciation, amortization and impairment losses of €(16) million.
4.3 Application of IFRIC Agenda
Decision on transactions on non-
financial items with physical
delivery within “IFRS 9 - Financial
Instruments”
Transition disclosures
In its Agenda Decision of March 2019, the IFRS Interpretations
Committee (IFRIC) clarified the proper recognition of contracts
entered into to buy or sell fixed-price non-financial items, ac-
counted for at fair value through profit or loss under IFRS 9 and
physically settled, including energy commodities.
Based on that measure, the Group changed its accounting
policy for the year ended December 31, 2019, with no impact
on net income or equity.
Past practice was based on the recognition in:
> “Net income/(expense) from commodity contracts measured
at fair value” of changes in the fair value of outstanding deriv-
atives as well as of the effects in profit or loss, at the settle-
ment date, of the derecognition of derivative assets/liabilities
deriving from the fair value measurement of those contracts;
> “Revenue from sales and services” and “Electricity, gas and
fuel purchases” of revenue and costs on the settlement date.
The current treatment of such contracts for non-financial
items that do not meet the requirements for the own use
exemption envisages recognition:
> under “Revenue” of changes in fair value on outstanding
sale contracts as well as, at the settlement date, of the
revenue together with the effects in profit or loss from the
derecognition of assets/liabilities deriving from the fair val-
ue measurement of those contracts;
> under “Costs”:
- of changes in fair value on outstanding purchase con-
tracts; and
- at the settlement date, of the associated purchase
costs as well as the effects in profit or loss from
derecognition of assets/liabilities deriving from the fair
value measurement of those contracts.
Consequently the income statement line “Net income/(ex-
pense) from commodity contracts measured at fair value”
has been renamed as “Net income/(expense) from commodi-
ty risk management”, which currently includes only changes in
fair value and settlement effects of energy commodity deriva-
tives without physical settlement.
204
Consolidated Annual Report 2019 Notes
8.a
8.b
[Subtotal]
9.a
9.b
9.c
9.d
9.e
9.f
9.g
[Subtotal]
10
11
12
11
12
13
14
Impact on the income statement
Millions of euro
Revenue
Revenue from sales and services
Other income
Costs
Electricity, gas and fuel purchases
Services and other materials
Personnel
Net impairment/(reversals) of trade receivables and other receivables
Depreciation, amortization and other impairment losses
Other operating expenses
Capitalized costs
Net income/(expense) from commodity risk management
Operating income
Financial income from derivatives
Other financial income
Financial expense from derivatives
Other financial expense
Net income/(expense) from hyperinflation
Share of income/(losses) of equity investments accounted for using
the equity method
Income before taxes
Income taxes
Net income from continuing operations
Net income from discontinued operations
Net income for the year (shareholders of the Parent Company
and non-controlling interests)
Attributable to shareholders of the Parent Company
Attributable to non-controlling interests
Basic earnings/(loss) per share attributable to shareholders of the
Parent Company (euro)
Diluted earnings/(loss) per share attributable to shareholders of the
Parent Company (euro)
Basic earnings/(loss) per share from continuing operations attributable
to shareholders of the Parent Company (euro)
Diluted earnings/(loss) per share from continuing operations
attributable to shareholders of the Parent Company (euro)
2018
73,134
2,538
75,672
35,728
18,870
4,581
1,096
5,355
2,889
(2,264)
66,255
483
9,900
1,993
1,715
1,532
4,392
168
349
8,201
1,851
6,350
-
6,350
4,789
1,561
0.47
0.47
0.47
0.47
Effect of IFRIC
application
(97)
-
(97)
1,536
(464)
-
-
-
(1,120)
-
(48)
49
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2018
73,037
2,538
75,575
37,264
18,406
4,581
1,096
5,355
1,769
(2,264)
66,207
532
9,900
1,993
1,715
1,532
4,392
168
349
8,201
1,851
6,350
-
6,350
4,789
1,561
0.47
0.47
0.47
0.47
205
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements With regard to the details in notes 8 and 9 on revenue and co-
commodities with physical delivery that fall within the scope
sts, respectively, the following tables give a breakdown of the
of IFRS 9.
effects of the application of the interpretation on contracts in
Millions of euro
Notes
Revenue from sales and services
Sale of electricity
Sale of fuels
Sale of environmental certificates
Sale of energy commodities under contracts with physical delivery
(IFRS 9)
Gain/(Loss) on derivatives on sale of commodities with physical
delivery
Total
8.a
8.a
8.a
8.a
8.a
Millions of euro
Notes
Purchase of electricity, gas and fuel
Electricity
Gas
Total
Other materials
Other operating expenses
Gain/(Loss) on derivatives on sale of commodities with physical
delivery
Total
Net income/(expense) from commodity risk management
Total impact of IFRIC application on profit or loss
9.a
9.a
9.b
9.f
10
2018
Effect of IFRIC
application
43,110
8,556
497
-
-
52,163
(3,832)
(7,637)
(461)
13,843
(2,010)
(97)
2018
Effect of IFRIC
application
19,584
12,944
32,528
2,375
218
1,318
1,536
(464)
-
(1,120)
34,903
483
-
(48)
49
-
2018
39,278
919
36
13,843
(2,010)
52,066
2018
19,802
14,262
34,064
1,911
(1,120)
34,855
532
-
5. Restatement of comparative disclosures
The figures presented in the comments and tables of the notes
ments in accordance with the provisions of IFRS 8. Specifically,
to the financial statements are consistent and comparable be-
bearing in mind that in 2019 management, understood as the
tween 2018 and 2019.
highest operational decision-making level for the purpose of
Note that in the light of the introduction of the new account-
taking decisions on the resources to be allocated to the seg-
ing policy for the recognition of contracts for the sale and pur-
ment and of measuring and evaluating the results, has begun
chase of non-financial items that are accounted for at fair value
to report performance by business area, the Group has there-
through profit or loss in accordance with IFRS 9 and settled
fore adopted the following reporting sectors:
with physical delivery, analogous reclassifications of the com-
> primary sector: business area; and
parative balances for 2018 have been performed to ensure the
> secondary sector: geographical area.
uniformity and comparability of the figures. These reclassifi-
The business area is therefore the main discriminant in the ana-
cations had no impact on margins or on shareholders’ equity.
lyzes performed and decisions taken by the management of
Please see paragraph 4.3 for further details.
the Enel Group, and is fully consistent with the internal report-
With regard to disclosures for operating segments, beginning
ing prepared for these purposes since the results are meas-
with the close of the accounts at September 30, 2019, the Enel
ured and evaluated first and foremost for each business area
Group has changed its primary and secondary reporting seg-
and only thereafter are they broken down by country.
206
Consolidated Annual Report 2019 The new business structure is organized as follows: Thermal
ographical area (now renamed North America and consisting
Generation and Trading, Enel Green Power, Infrastructure and
of the following countries: United States, Canada and Mexico).
Networks, End-user Markets, Enel X, Services and Holding/
In order to ensure full comparability of the figures commented
Other.
here in the light of the new breakdown of the primary and sec-
Finally, it should be noted that with effect from September
ondary reporting sectors for IFRS 8 disclosure purposes and of
2019, the Latin America area connected with the Enel Green
the reallocation of countries in the Enel Green Power segment,
Power business area also includes the countries Panama,
the comparative figures for 2018 have been adjusted appropri-
Costa Rica, Guatemala, El Salvador and Nicaragua, which had
ately.
previously been reported in the North and Central America ge-
6. Main changes in the scope
of consolidation
In the two periods under review, the scope of consolidation
80% of eight special purpose vehicles that own eight plants
changed as a result of a number of transactions.
in operation or under construction in Mexico. Following the
2018
close of the transaction, Enel Green Power SpA holds 20%
of their share capital, meaning that the companies are now
accounted for using the equity method;
> Disposal, on March 12, 2018, of 86.4% of Erdwärme Ober-
> disposal, on October 18, 2018, by Enel Green Power SpA of
land GmbH, a company developing geothermal plants
the biomass generation plant of Finale Emilia;
headquartered in Germany. The total transaction price was
> disposal, on December 14, 2018, by Enel Green Power SpA
€0.9 million, with a realized capital gain of €1 million;
of its wholly owned subsidiary Enel Green Power Uruguay
> acquisition, on April 2, 2018, of 33.6% of the minority in-
SA, which in turn owns the vehicle Estrellada SA of the 50
terests in Enel Generación Chile, enabling Enel Chile to
MW Melowind wind farm at Cerro Largo.
increase its stake in Enel Generación Chile to 93.55%. In
addition, on that date the merger of the renewables com-
pany Enel Green Power Latin America SA into Enel Chile
2019
took effect;
> Disposal, on March 1, 2019, of 100% of Mercure Srl, a
> acquisition, on April 3, 2018, acting through Enel Green
company to which the business unit consisting of the Mer-
Power España, of 100% of Parques Eólicos Gestinver SLU
cure biomass plant and the related legal relationships had
and Parques Eólicos Gestinver Gestión SLU for €57 million,
been previously transferred. The price for the transaction
of which €15 million of existing debt assumed;
was €168 million;
> acquisition, on June 7, 2018, by Enel Sudeste of control
> acquisition, on March 14, 2019, by Enel Green Power SpA,
of the Brazilian distribution company Enel Distribuição São
acting through its US renewables subsidiary Enel Green
Paulo (formerly Eletropaulo Metropolitana Eletricidade de
Power North America (EGPNA, now renamed Enel North
São Paulo SA) following initial participation of shareholders.
America), of 100% of 13 companies that own seven oper-
The tender for 100% of the shares ended on July 4, 2018.
ating renewable generation plants from Enel Green Power
At September 30, 2018, the company was consolidated on
North America Renewable Energy Partners (EGPNA REP),
the basis of a 95.88% holding by the Group;
a joint venture 50% owned by EGPNA and 50% by General
> acquisition, on July 25, 2018, acting through the subsidiary
Electric Capital’s Energy Financial Services;
Endesa Red, of 94.6% of Empresa de Alumbrado Eléctrico
> acquisition, on March 27, 2019, by Enel Green Power SpA
de Ceuta SA, a company operating in the distribution and sale
(EGP), acting through its US renewables subsidiary EGP-
of electricity in the autonomous city of Ceuta in North Africa;
NA (now ENA), of Tradewind Energy, a renewable energy
> disposal, on September 28, 2018, to Caisse de Dépôt et
project development company based in Lenexa, Kansas.
Placement du Québec (CDPQ), a long-term institutional in-
EGP has incorporated the entire Tradewind development
vestor, and CKD Infraestructura México SA de CV (CKD IM),
platform, which includes 13 GW of wind, solar and storage
the investment vehicle of leading Mexican pension funds, of
projects located in the United States. The agreement also
207
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements provided for the sale, which took place in June, of Savion,
ropaulo Metropolitana Eletricidade de São Paulo SA for
a wholly owned subsidiary of Tradewind;
about €93 million;
> acquisition, on April 30, 2019, by Enel X Italia of 100% of
> on December 5, 2019, Enel SpA increased its stake in Enel
YouSave SpA, an Italian company operating in the energy
Chile by 0.11% under the provisions of two share swap
services sector, providing assistance to large electricity
transactions with a financial institution to increase its inter-
consumers;
est in Enel Chile SA by a maximum of 3% of share capital.
> on May 31, 2019, the finalization, acting through the re-
newables subsidiary Enel Green Power Brasil Participações
Ltda, of the disposal of 100% of three renewables plants
in Brazil. The total price of the transaction was about R$2.7
billion, the equivalent of about €603 million;
> acquisition, on November 14, 2019, by Enel X Srl of 55%
of PayTipper, an authorized payment institution that offers
its customers financial services to facilitate their daily lives.
The contract is accompanied by a put option for the re-
maining 45%.
Other changes
In addition to the above changes in the scope of consolida-
tion, note the following transactions, which although they do
not represent transactions involving the acquisition or loss of
control, gave rise to a change in the interest held by the Group
in the investees:
> Enel SpA increased its stake over the course of 2019 in
Acquisition of geothermal, solar
and wind plants from Enel Green
Power North America Renewable
Energy Partners
On March 14, 2019, Enel Green Power SpA, acting through
its US subsidiary Enel Green Power North America (EGPNA,
now called Enel North America), acquired 100% of 13 com-
panies owning seven operating renewable generation plants
with a total capacity of 650 GW from Enel Green Power
North America Renewable Energy Partners (EGPNA REP), a
joint venture 50% owned by EGPNA (now ENA) and 50% by
General Electric Capital’s Energy Financial Services.
The acquisition involved a cash outflow of €225 million, of
which €198 million for the equity acquired and €27 million for
the settlement with the counterparty of a number of creditor
positions that the latter had in respect of the companies ac-
Enel Américas by 5.74% under the provisions of the two
quired.
share swap contracts signed with a financial institution and
as a result of a non-proportional capital increase in the sub-
sidiary, bringing the Group’s interest to 59.97%;
> on March 25, 2019, Enel X International acquired 40% of
EnerNOC Japan K.K, bringing its stake to 100%;
> on September 5, 2019, Enel Green Power Development
acquired 23.44% of Enel Green Power India, bringing its
interest to 100%;
> on November 21, 2019, Enel Brasil acquired 4.1% of Elet-
The 13 companies included in the transaction own the follow-
ing seven plants: Cove Fort, Salt Wells, Stillwater (two plants),
Cimarron Bend, Lindahl, Sheldon Springs.
The transaction involved the provisional recognition of nega-
tive goodwill of €106 million and the concomitant recognition
of a loss by EGPNA REP, which is accounted for using the eq-
uity method, reflecting the capital loss (€88 million pertaining
to EGPNA) on the sale of the 13 companies to EGPNA.
208
Consolidated Annual Report 2019 The following table reports the provisional fair values of the net assets acquired.
Millions of euro
Property, plant and equipment
Intangible assets
Goodwill
Investments accounted for using the equity method
Inventories
Trade receivables
Other current assets
Cash and cash equivalents
Borrowings
Provisions for risks and charges (non-current portion)
Deferred tax liabilities
Other non-current liabilities
Short-term borrowings
Current portion of long-term borrowings
Trade payables
Other current liabilities
Non-controlling interests
Net assets acquired
Cost of the acquisition
(of which paid in cash)
Goodwill/(Badwill)
Carrying amount prior
to March 14, 2019
Adjustments from
purchase price allocation
Carrying amount
at March 14, 2019
947
20
13
(10)
2
6
7
6
(579)
(9)
-
(2)
(2)
(41)
(8)
(2)
-
348
225
225
(123)
86
(20)
(13)
-
-
-
-
-
(24)
7
(56)
(5)
-
8
-
-
-
(17)
-
-
17
1,033
-
-
(10)
2
6
7
6
(603)
(2)
(56)
(7)
(2)
(33)
(8)
(2)
-
331
225
225
(106)
The companies acquired contributed €112 million in revenue
Under the terms of the agreement, Savion, a 100% subsidi-
and €41 million in operating income to results for 2019.
ary of Tradewind, which has a 6 GW development platform of
Acquisition of Tradewind Energy
solar and storage projects, would be sold to the Green Invest-
ment Group, part of the Australian multinational Macquarie,
and the Cheyenne Ridge company would be sold to Xcel. At
On March 27, 2019, Enel Green Power acquired Tradewind
June 30, 2019, those disposals had been finalized. Definitive
Energy, a renewables project development company with 13
regulatory approval of the disposal of Savion was obtained in
GW of wind, solar and storage projects located in the United
July 2019.
States.
209
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table reports the provisional fair values of the net assets acquired.
Millions of euro
Property, plant and equipment
Intangible assets
Deferred tax assets
Other non-current assets
Trade receivables
Other current assets
Cash and cash equivalents
Deferred tax liabilities
Other non-current liabilities
Short-term borrowings
Trade payables
Other current financial liabilities
Other current liabilities
Net assets acquired
Cost of the acquisition
(of which paid in cash)
Goodwill/(Badwill)
Carrying amount prior
to March 27, 2019
Adjustments from
purchase price allocation
Carrying amount
at March 27, 2019
8
2
11
31
3
1
4
-
(1)
(87)
(6)
(54)
(3)
(91)
6
6
97
(2)
100
(11)
3
(3)
117
-
(26)
-
-
(4)
25
(2)
197
25
25
(172)
6
102
-
34
-
118
4
(26)
(1)
(87)
(10)
(29)
(5)
106
31
31
(75)
The accounting effects of the transaction involved the reco-
The total consideration, equal to €29 million, based on the
gnition of negative goodwill of €75 million. During the year,
structure of the operation, was divided as follows:
the process of allocating the purchase price was comple-
> price at the date the agreement was signed, equal to €20
ted by independent experts, who allocated the portfolio of
million;
projects under development to “intangible assets”. Those no
> a final price adjustment of €9 million.
longer considered strategic and subsequently sold were reco-
gnized under “other current assets”.
The acquisition involved a cash outlay of €26 million, including
Acquisition of YouSave
the payment of €3 million into an escrow account.
This residual amount of €3 million represents a deferred com-
ponent to be paid on the 18th month from the execution date,
On April 30, 2019, Enel X Italia acquired 100% of YouSave
unless the conditions for the payment of the indemnity by the
SpA, an Italian company that operates in the energy services
seller to the buyer with respect to a dispute pending before
sector, providing assistance to large energy consumers in the
the Court of Bergamo should exist.
industrial, services and government sectors with the aim of
significantly reducing energy expenditure by jointly improving
The following table reports the provisional fair values of the
prices and the amount of power consumed.
net assets acquired.
Carrying amount prior to
April 30, 2019
Adjustments from
purchase price
allocation
Post-adjustment carrying
amount at April 30, 2019
15
29
14
24
-
(24)
39
29
(10)
Millions of euro
Net assets acquired
Cost of the acquisition
Goodwill/(Badwill)
210
Consolidated Annual Report 2019 Acquisition of PayTipper
is associated with a put option for the remaining 45%, to be
exercised no later than April 30, 2024. At December 31, 2019
On November 14, 2019, Enel X acquired 55% of PayTipper,
the put option had a value of €17 million.
a payment institution with agreements with an extensive
The Group will determine the fair value of the assets acquired
network of sales outlets that offers its customers financial
and the liabilities assumed within 12 months of the acquisi-
services to facilitate their daily lives. In addition, the contract
tion date.
Determination of goodwill
Millions of euro
Net assets acquired
Cost of the acquisition
(of which paid in cash)
Goodwill
4
22
5
18
Disposal of three renewables
plants in Brazil
ables subsidiary Enel Green Power Brasil Participações Ltda.
The total consideration in the transaction, paid to Enel at
closing, was equal to the enterprise value of the plants and
On May 31, 2019 the disposal of 100% of three operating
amounted to about R$2.7 billion, equivalent to about €603
renewables plants in Brazil was finalized through the renew-
million.
Millions of euro
Value of the transaction
Net assets sold
Transaction costs
Reversal of OCI reserve
Capital loss
603
(565)
(4)
(41)
(7)
Disposal of Mercure Srl
the Mercure biomass power plant and related legal relation-
ships had previously been transferred. The price for the sale
March 1, 2019, saw the finalization of the sale of 100% of
Mercure Srl, a company to which a business unit consisting of
was €168 million.
Millions of euro
Value of the transaction
Net assets sold
Capital gain
168
60
108
211
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements
7. Segment information
The representation of performance and financial position by
and of the reallocation of countries in the Enel Green Power
business area presented here is based on the approach used
segment, the comparative figures for 2018 have been restat-
by management in monitoring Group performance for the two
ed appropriately. At the same time, within each CGU, lower
periods being compared.
level operating units were identified at the intersections of the
As already discussed in note 5 to the consolidated financial
organizational matrix (Business Line/Country/Region), which
statements, since September 2019, segment information has
in accordance with IAS 36 made it possible to reallocate the
been reformulated to give a more consistent view of the deci-
goodwill associated with the higher level and reported cumula-
sion-making processes implemented by management, which
tively at December 31, 2018 in the column “Other, eliminations
give priority to analyzes by Business Line rather than by Coun-
and adjustments”.
try or Region.
In order to ensure full comparability of the figures comment-
For more information on performance and financial develop-
ed here in the light of the new breakdown of the primary and
ments during the year, please see the dedicated section in the
secondary reporting sectors for IFRS 8 disclosure purposes
Report on Operations.
212
Consolidated Annual Report 2019 Segment information for 2019 and 2018
Results for 2019 (1)
Millions of euro
Revenue and other income from third
parties
Revenue and other income from
transactions with other segments
Total revenue
Total costs
Net income/(expense) from commodity
risk management
Depreciation and amortization
Impairment losses
Reversals of impairment losses
Operating income
Capital expenditure
Thermal
Generation
and Trading
Enel
Green
Power
Infrastructure
and
Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
30,519
7,360
20,092
19,482
967
1,901
6
80,327
1,532
373
1,697
13,062
163
80
(16,907)
-
32,051
29,980
(676)
1,142
4,031
(284)
7,733
3,143
14
99
(12)
(3,494)
3,276
851
4,293 (2)
21,789
32,544
1,130
13,511
29,186
972
1,981
1,855
(16,901)
(16,757)
80,327
61,890
-
371
(62)
5,277
3,905
(71)
333
930
(139)
2,163
449
-
145
111
-
(98)
270
-
171
33
(3)
(75)
134
-
26
1
-
(171)
45
(733)
5,750
5,576
(500)
6,878
9,947
1,241
2,692
(1) Segment revenue includes both revenue from third parties and revenue flows between the segments. An analogous approach was taken for other income and
costs for the period.
(2) Does not include €4 million regarding units classified as “held for sale”.
Results for 2018 (1) (2) (3)
Millions of euro
Revenue and other income from third
parties
Revenue and other income from
transactions with other segments
Total revenue
Total costs
Net income/(expense) from commodity
risk management
Depreciation and amortization
Impairment losses
Reversals of impairment losses
Operating income
Capital expenditure
Thermal
Generation
and Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
26,630
7,613
18,250
20,340
849
1,878
15
75,575
977
443
1,718
13,431
157
60
(16,786)
-
27,607
27,130
8,056
3,286
19,968
33,771
1,006
12,429
30,681
882
1,938
1,918
(16,771)
75,575
(16,570)
59,756
640
(162)
1,098
158
(21)
1,101
131
(129)
(118)
3,505
839
2,784 (4)
-
2,483
337
(68)
4,787
3,830
(11)
314
1,000
(193)
1,958
374
-
86
15
4
19
183
65
113
15
(5)
(38)
106
-
19
1
(8)
(213)
36
532
5,214
1,657
(420)
9,900
8,152
(1) Segment revenue includes both revenue from third parties and revenue flows between the segments. An analogous approach was taken for other income and
costs for the period.
(2) The figures have been restated to ensure comparability with results for 2019, which are presented using business area as the primary reporting segment.
(3) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
(4) Does not include €378 million regarding units classified as “held for sale”.
213
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Financial position by segment
At December 31, 2019
Millions of euro
Thermal
Generation
and Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Property, plant and equipment
11,863
30,351
36,333
160
Intangible assets
134
4,697
23,782
3,624
Non-current and current contract assets
Trade receivables
Other
Operating assets
-
3,219
1,426
-
1,726
1,421
482
-
7,649
3,838
1,654
543
16,642 (1)
38,195 (2)
69,900 (3)
8,165
Trade payables
3,383
2,192
Non-current and current contract liabilities
Sundry provisions
Other
Operating liabilities
199
3,410
1,074
8,066
167
903
1,843
5,105
5,411
7,271
4,412
8,867
25,961 (4)
5,028
75
494
2,642
8,239
442
605
53
607
1,098
2,805
414
5
34
415
868
663
466
75
676
1,283
3,163
949
16
578
1,451
2,994
Other,
eliminations
and
adjustments
11
29
43
Total
79,823
33,337
653
(4,632)
13,083
(1,350)
6,075
(5,899)
132,971
(4,417)
12,960
(104)
7,629
459
10,290
(503)
15,789
(4,565)
46,668
(1) Of which €4 million regarding units classified as “held for sale”.
(2) Of which €7 million regarding units classified as “held for sale”.
(3) Of which €10 million regarding units classified as “held for sale”.
(4) Of which €3 million regarding units classified as “held for sale”.
At December 31, 2018 (1)
Millions of euro
Thermal
Generation
and Trading
Enel
Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Property, plant and equipment
15,448
25,971
35,026
73
Intangible assets (2)
Non-current and current contract assets
Trade receivables
Other
Operating assets
38
15
4,345
2,483
1,220
-
1,290
1,042
15,875
1,078
348
-
7,582
4,640
2,424
555
22,329 (3) 29,523 (4)
61,255 (5)
6,346
1,133
344
347
47
282
113
Trade payables
4,680
1,806
5,555
5,535
Non-current and current contract liabilities
Sundry provisions
Other
Operating liabilities
220
2,490
1,647
100
768
1,517
7,156
4,644
6,746
9,037
4,191 (7)
24,101 (8)
41
551
2,454
8,581
381
13
35
257
686
Other,
eliminations
and
adjustments
10
Total
77,243
14,343
33,315
(7)
481
(5,224)
13,611
(1,985)
6,358
7,137 (6)
131,008
(5,458)
13,389
(141)
524
7,401
9,681
(998)
12,934
(6,073)
43,405
371
414
78
696
1,726
3,285
890
12
669
1,311
2,882
(1) The figures have been restated to ensure comparability with the results at December 31, 2019, which are presented using business area as the primary
reporting segment.
(2) Intangible assets include goodwill allocated by country, which was reallocated by business area in 2019 in the light of new breakdown of primary and se-
condary reporting segments for the purpose of IFRS 8 disclosures.
(3) Of which €4 million regarding units classified as “held for sale”.
(4) Of which €635 million regarding units classified as “held for sale”.
(5) Of which €5 million regarding units classified as “held for sale”.
(6) Of which €23 million regarding units classified as “held for sale”.
(7) Of which €19 million regarding units classified as “held for sale”.
(8) Of which €3 million regarding units classified as “held for sale”.
214
Consolidated Annual Report 2019 The following table reconciles segment assets and liabilities and the consolidated figures.
Millions of euro
Total assets
Equity investments accounted for using the equity method
Non-current derivative assets
Other non-current financial assets
Long-term tax receivables included in “Other non-current assets”
Current financial assets
Current derivative assets
Cash and cash equivalents
Deferred tax assets
Tax receivables
Financial and tax assets of “Assets held for sale”
Segment assets
Total liabilities
Long-term borrowings
Non-current derivative liabilities
Short-term borrowings
Current portion of long-term borrowings
Current financial liabilities
Current derivative liabilities
Deferred tax liabilities
Income tax payable
Other tax payables
Financial and tax liabilities of “Liabilities held for sale”
Segment liabilities
at Dec. 31, 2019
171,426
at Dec. 31, 2018
165,424
1,682
1,383
6,006
1,587
4,305
4,065
9,029
9,112
1,206
80
132,971
124,488
54,174
2,407
3,917
3,409
754
3,554
8,314
209
1,082
-
46,668
2,099
1,005
5,769
231
5,160
3,914
6,630
8,305
1,282
21
131,008
117,572
48,983
2,609
3,616
3,367
788
4,343
8,650
333
1,093
385
43,405
215
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Revenue
8.a Revenue from sales and services - €77,366 million
Millions of euro
Sale of electricity (1)
Transport of electricity
Fees from network operators
Transfers from institutional market operators
Sale of gas
Transport of gas
Sale of fuels (1)
Connection fees to electricity and gas networks
Construction contracts
Sale of environmental certificates (1)
Sale of value-added services
Other sales and services
Total IFRS 15 revenue
Operating leases
Sale of energy commodities under contracts with physical delivery (IFRS 9) (1)
Gain/(Loss) on derivatives on sale of commodities with physical delivery (1)
Reinsurance premiums
Other revenue
2019
40,045
10,470
866
1,625
3,294
617
914
785
749
36
343
1,295
61,039
24
10,775
5,519
6
3
2018
39,278
10,101
1,012
1,711
4,401
576
919
714
735
36
390
1,305
61,178
26
13,843
(2,010)
-
-
Change
767
369
(146)
(86)
(1,107)
41
(5)
71
14
-
(47)
(10)
(139)
(2)
(3,068)
7,529
6
3
2.0%
3.7%
-14.4%
-5.0%
-25.2%
7.1%
-0.5%
9.9%
1.9%
-
-12.1%
-0.8%
-0.2%
-7.7%
-22.2%
-
-
-
TOTAL REVENUE FROM SALES AND SERVICES
77,366
73,037
4,329
5.9%
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
The increase in revenue from energy sales (€767 million) is
Revenue from the sale of natural gas for 2019, which totaled
mainly attributable to the consolidation of Enel Distribuição São
€3,294 million, decreased by €1,107 million from the previous
Paulo in June 2018.
year (€4,401 million in 2018). The decrease reflects lower quan-
tities sold and, above all, lower average prices applied for sales
Revenue from the transport of electricity came to €10,470 mil-
in Spain (€1,136 million) compared with the previous year.
lion in 2019, an increase of €369 million. This increase was
mainly due to the acquisition of Enel Distribuição São Paulo
Other non-IFRS 15 revenue increased by €4,468 million due to
and the greater distribution revenue in Italy, above all as a re-
the sale of commodities under contracts for physical delivery
sult of the regulatory change with Resolution no. 654/2015 of
and adjustments to their fair value, including for the unsettled
the Regulatory Authority for Energy, Networks and the Envi-
portion following reclassification as a result of application of the
ronment (ARERA) (related to “regulatory lag”).
IFRIC Agenda Decision of March 2019 concerning the recogni-
tion of contracts on commodities with the physical delivery of
Revenue generated by fees from network operators came to
energy within the scope of IFRS 9.
€866 million, a decrease of €146 million compared with the
previous year due, above all, to lower fees for the remuneration
Revenue from contracts with customers (IFRS 15) for 2019
of generation plants in Italy.
totaled €61,039 million and can be broken down into point-in-
time and over-time revenue as shown in the table below:
216
Consolidated Annual Report 2019 Millions of euro
Total IFRS 15
revenue
2019
Europe
and Euro-
Mediterranean
Italy
Point
in time
Iberia Latin America
Point
Over
Point
in time
time
in time
Over
time
Over
time
Over
time
Affairs North America
Point
in time
Point
in time
Over
time
Other,
eliminations
and
adjustments
Point
Over
in time
time
Africa, Asia
and Oceania
Point
Over
in time
time
Total
Point
in time
Over
time
22,635
522 17,860
785 15,573
503
1,383
934
646
27
76
81
7
7 58,180
2,859
The table below gives a breakdown of revenue from sales and services by geographical area:
Millions of euro
Italy (1)
Europe
Iberia (1)
France
Switzerland
Germany
Austria
Slovenia
Slovakia
Romania
Greece
Bulgaria
Belgium
Czech Republic
Hungary
Russia
Netherlands
United Kingdom
Other European countries
Americas
United States
Canada
Mexico (1)
Brazil
Chile
Peru
Colombia
Argentina
Other South American countries
Other
Africa
Asia
Total
2019
26,420
18,265
1,259
217
3,746
173
40
1
1,311
73
8
26
152
418
897
6,553
726
(23)
501
18
233
7,752
3,263
1,261
2,243
1,323
169
92
249
77,366
2018
27,385
18,379
1,006
1,039
2,297
155
27
-
1,214
62
9
320
113
399
989
2,139
1,685
113
466
23
519
6,518
3,169
1,275
2,242
1,265
14
82
133
73,037
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
217
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Performance obligations
The following table provides information about the Group’s
performance obligations arising from contracts with custo-
mers with reference to the main revenue streams only, with
a summary of the specific judgments made and the related
revenue recognition policies:
Type of product/service
Nature and timing of satisfaction of performance
obligation
Accounting policies
Revenue from the sale and transport of electricity/
gas to end users is recognized when these
commodities are delivered to the customer and
is based on the quantities provided during the
period, even if these have not yet been invoiced. It
is determined using estimates as well as periodic
meter readings. Where applicable, this revenue
is based on the rates and related restrictions
established by law or by the Regulatory Authority
for Energy, Networks and the Environment (ARERA)
and analogous foreign authorities during the
applicable period.
Sale/transport
electricity/gas to end-
users
An electricity/gas supply agreement signed with
an end users includes a single performance
obligation (sale and transport of the commodity)
because the Group has determined that the
contract does not provide distinct goods/services
and the promise is satisfied by transferring control
over the commodity to the customer when it
is delivered at the point of delivery. In order to
determine the nature of the promise included
in such contracts, the Group carefully analyzes
the facts and circumstances applicable to each
contract and commodity.
However, the Group considers that the
performance obligation provided for in a repetitive
service contract, such as a supply or transport
contract for the provision of electricity/gas to end
users is typically satisfied over time (because the
customer simultaneously receives and consumes
the benefits of the commodity as it is delivered)
as part of a series of distinct goods/services (i.e.,
each unit of commodity) that are substantially the
same and have the same pattern of transfer to
the customer. In these cases, the Group applies
an output method to recognize revenue in the
amount to which it has a right to invoice the
customer if that amount corresponds directly with
the value to the customer of the performance
completed to date.
218
Consolidated Annual Report 2019 Type of product/service
Nature and timing of satisfaction of performance
obligation
Accounting policies
The network connection fees received from
customers for connecting them to the electricity/
gas distribution networks require a specific Group
assessment to take into consideration all terms
and conditions of the connection arrangements.
This assessment is intended to determine
whether the contract includes other distinct
goods or services, such as for example, the right
to obtain ongoing access to the infrastructure
in order to receive the commodity or, when the
connection fee is a “non-refundable up-front fee”
paid at or near contract inception, a material right
that gives rise to a performance obligation.
In particular, in some countries in which the Group
operates, it has determined that the nature of the
consideration received represents a “non-refundable
up-front fee” whose payment provides a material
right to the customer. In order to determine if the
period over which this material right should be
recognized extends beyond the initial contractual
period, the Group takes into consideration the
applicable local legal and regulatory framework
applicable to the contract and that affect the parties.
In such cases, if there is an implied assignment
of the material right and an obligation from the
initial customer to the new customer, the Group
recognizes the connection fee over a period beyond
the relationship with the initial customer, considering
the concession terms as the period during which
the initial customer and any future customer can
benefit from the ongoing access without paying
an additional connection fee. As a consequence,
the fee is recognized over the period for which the
payment creates an obligation for the Group to make
the lower prices available to future customers (i.e.,
the period during which the customer is expected
to benefit from the ongoing access service without
having to pay an “up-front fee” upon renewal).
The construction contracts typically include a
performance obligation satisfied over time. For
these contracts, the Group generally considers it
appropriate to use an input method for measuring
progress, except when a specific contract analysis
suggests the use of an alternative method that
better depicts the Group’s performance obligation
fulfilled at reporting date.
Network connection
services
Construction contracts
Revenue from monetary and in-kind fees for
connection to the electricity and gas distribution
network is recognized on the basis of the
satisfaction of the performance obligations included
in the contract. The identification of distinct goods or
services requires a careful analysis of the terms and
conditions of the connection arrangements, which
could vary from country to country based on the
local context, regulations and law. In order to finalize
this assessment, the Group considers not only the
characteristics of the goods/services themselves
(i.e., the good or service is capable of being
distinct) but also the implied promises for which the
customer has a valid expectation as it views those
promises as part of the negotiated exchange, that
is goods/services that the customer expects to
receive and has paid for (i.e., the promise to transfer
the good or service to the customer is separately
identifiable from other promises in the contract).
Furthermore, the Group acts as an agent in some
contracts for electricity/gas network connection
services and other related activities, depending on
local legal and regulatory framework. In such cases,
it recognizes revenue on a net basis, corresponding
to any fee or commission to which it expects to be
entitled.
For construction contracts that include a
performance obligation satisfied over time, the
Group recognizes revenue over time by measuring
progress toward the complete satisfaction of that
performance obligation. The cost-incurred method
(cost-to-cost method) is generally considered the
best method to depict the Group’s performance
obligation fulfilled at the reporting date.
The amount due from customers under a construction
contract is presented as a contract asset; the amount
due to customers under a construction contract is
presented as a contract liability.
219
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 8.b Other income - €2,961 million
Millions of euro
Operating grants
Grants for environmental certificates
Capital grants (electricity and gas business)
Sundry reimbursements
Gains on disposal of subsidiaries, associates, joint ventures, joint
operations and non-current assets held for sale
Gains on the disposal of property, plant and equipment, and intangible
assets
Service continuity bonuses
Other income
Total
2019
2018
Change
19
475
25
521
325
79
32
1,485
2,961
20
664
22
353
287
61
44
1,087
2,538
(1)
(189)
3
168
38
18
(12)
398
423
-5.0%
-28.5%
13.6%
47.6%
13.2%
29.5%
-27.3%
36.6%
16.7%
Grants for environmental certificates amounted to €475 mil-
companies in Mexico at the end of September 2018 and
lion, a decrease of €189 million from the previous year due
the associated re-measurement at fair value of the 20%
essentially to a reduction in grants on energy efficiency cer-
stake retained by the Group in the companies sold (€190
tificates obtained on distribution in Italy.
million);
> the gain on the sale of EF Solare Italia (€65 million);
Sundry reimbursements increased by €168 million, attrib-
> the gain on the sale of a number of companies within the
utable mainly to Enel Generación Chile for the indemnity
Enel Green Power Business Line in Uruguay (€18 million).
received from the customer Anglo American for early with-
drawal from a long-term electricity supply agreement totaling
The aggregate “Other income” increased by €398 million in
€160 million, of which €80 million related to Thermal Genera-
2019, essentially attributable to:
tion and Trading Business Line and €80 million related to the
> an increase in revenue in Argentina following the Edesur
Enel Green Power Business Line.
agreement with the local authorities resolving reciprocal
pending issues arising during the 2006-2016 period (€233
Gains on the disposal of entities came to €325 million in
million);
2019, an increase of €38 million, and mainly include:
> the adjustment to the amount paid for the acquisition of
> the gain on the sale of Mercure Srl, a special-purpose ve-
eMotorWerks in 2017 in application of certain contract
hicle to which Enel Produzione had previously transferred
clauses (€98 million);
the Valle del Mercure biomass plant (€108 million);
> the €50 million payment under the agreement that e-dis-
> the negative goodwill (of €181 million) resulting from the
tribuzione reached with F2i and 2i Rete Gas for the early,
definitive allocation of the purchase price of (i) a number
lump-sum settlement of the second indemnity connected
of companies sold by Enel Green Power North Ameri-
with the sale, in 2009, of e-distribuzione’s share held in
ca Renewable Energy Partners LLC (€106 million) and (ii)
Enel Rete Gas.
Tradewind, which transitioned from being an associated
company to a wholly-owned subsidiary (negative goodwill
In 2018, this aggregate mainly included the €128 million in-
of €75 million);
demnity related to the e-distribuzione agreement for the sale
> the gains of €42 million on the disposals of Gratiot and
of Enel Rete Gas in 2009.
Outlaw, two renewable energy projects developed by
Tradewind.
The following table shows a breakdown of total revenue from
sales and services by business area based on the approach
In 2018, this item mainly included:
used by management to monitor the Group’s performance
> the gain on the sale, with loss of control, of eight project
during the two years being compared.
220
Consolidated Annual Report 2019 Millions of euro
2019
Thermal
Generation and
Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other,
eliminations
and
adjustments
Total
31,744
307
32,051
7,173
560
7,733
20,599
32,042
1,011
1,946
(17,149)
77,366
1,190
21,789
502
32,544
2018 (1)
119
35
248
2,961
1,130
1,981
(16,901)
80,327
27,412
7,650
18,805
33,444
195
27,607
406
8,056
1,163
19,968
327
33,771
1,006
964
42
1,958
(20)
1,938
(17,196)
73,037
425
2,538
(16,771)
75,575
Revenue from sales and
services
Other income
Total revenue
Revenue from sales and
services
Other income
Total revenue
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
221
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Costs
9.a Electricity, gas and fuel purchases - €33,755 million
Millions of euro
Electricity (1)
Gas (1)
Nuclear fuel
Other fuels
Total
2019
20,449
10,706
125
2,475
33,755
2018
19,802
14,262
118
3,082
37,264
Change
647
(3,556)
7
(607)
(3,509)
3.3%
-24.9%
5.9%
-19.7%
-9.4%
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
Purchases of electricity, gas and other fuels decreased by
see paragraph 4.3 of the notes to the consolidated financial
€3,509 million in 2019 mainly due to the reclassifications in re-
statements.
sponse to the IFRIC Agenda Decision of March 2019 concern-
This reduction, under “fuels”, also includes the €206 million
ing the recognition of non-financial transactions for physical
in impairment losses on fuel inventories associated with the
deliveries within the scope of IFRS 9. For more information,
coal-fired plants subject to impairment in Italy and Spain.
9.b Services and other materials - €18,580 million
Millions of euro
Transmission and transport
Maintenance and repairs
Telephone and postal costs
Communication services
IT services
Leases and rentals
Other services
Other materials (1)
Total
2019
9,879
1,145
181
142
806
382
3,935
2,110
18,580
2018
9,754
1,013
180
129
773
589
4,057
1,911
18,406
Change
1.3%
13.0%
0.6%
10.1%
4.3%
-35.1%
-3.0%
10.4%
0.9%
125
132
1
13
33
(207)
(122)
199
174
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
Costs for services and other materials amounted to €18,580
the impairment of spare-parts inventories associated with the
million in 2019, an increase on 2018 of €174 million. This incre-
coal-fired plants subject to impairment in Italy and Spain for a
ase is mainly attributable to “Other materials”, which includes
total of €102 million.
222
Consolidated Annual Report 2019 9.c Personnel - €4,634 million
Millions of euro
Wages and salaries
Social security contributions
Deferred compensation benefits
Other post-employment and long-term benefits
Early retirement incentives
Other costs
Total
2019
3,240
875
103
108
101
207
2018
3,157
894
103
113
138
176
4,634
4,581
Change
83
(19)
-
(5)
(37)
31
53
2.6%
-2.1%
-
-4.4%
-26.8%
17.6%
1.2%
Personnel costs amounted to €4,634 million in 2019, an in-
the total workforce essentially reflects the greater average
crease of €53 million.
size of the workforce in 2019 due to the consolidation of Enel
The Group’s workforce decreased by 1,019 employees, main-
Distribuição São Paulo, which only took effect as from June
ly reflecting the negative difference between new hires and
2018.
terminations (1,094 employees) due to early-retirement in-
Early retirement incentives in 2019 totaled €101 million, a de-
centives, only partially offset by a net increase for changes
crease of €37 million mainly attributable to Latin America and
in the scope of consolidation (75 employees) essentially at-
Italy in reflection of terminations of employment in application
tributable to:
of the provisions of Article 4 of Law 92/2012 (the “Fornero
> the disposal of the Mercure plant by Enel Produzione in
Act”) applied mainly in 2018, which were only partially offset
Italy;
by the cost increase in Spain for the Plan de Salida incentive
> the acquisition of Tradewind in the USA;
plan.
> the sale of the Reftinskaya GRES plant in Russia;
> the acquisition of PayTipper Network Srl, FlagPay Srl, and
The table below shows the average number of employees by
PayTipper in Italy.
category, along with a comparison with the previous year, and
the headcount as of December 31, 2019.
The increase in wages and salaries despite the decrease in
Senior managers
Middle managers
Office staff
Blue collar
Total
Average (1)
Headcount (1)
2018
1,343
10,614
33,906
20,834
66,697
Change
at Dec. 31, 2019
32
402
1,160
12
1,606
1,357
11,329
36,280
19,287
68,253
2019
1,375
11,016
35,066
20,846
68,303
(1) For companies consolidated on a proportionate basis, the headcount corresponds to Enel’s percentage share of the total.
223
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 9.d Net impairment/(reversals) of trade receivables
and other receivables - €1,144 million
Millions of euro
Impairment of trade receivables
Impairment of other receivables
Total impairment of trade and other receivables
Reversals of impairment losses on trade receivables
Reversals of impairment losses on other receivables
Total reversals of impairment losses on trade and other receivables
TOTAL NET IMPAIRMENT/(REVERSALS) OF TRADE AND OTHER
RECEIVABLES
2019
1,239
116
1,355
(202)
(9)
(211)
1,144
2018
1,367
18
1,385
(281)
(8)
(289)
1,096
Change
(128)
98
(30)
79
(1)
78
48
-9.4%
-
-2.2%
-
-
-
4.4%
The aggregate, which totaled €1,144 million, includes impair-
by the increased impairment resulting from the consolidation
ment losses and reversals of impairment losses on trade and
of Enel Distribuição São Paulo and by a decrease in reversals
other receivables. The decrease in impairment for Italian com-
of impairment for Endesa Energía.
panies operating in end-user markets was more than offset
9.e Depreciation, amortization and other impairment losses -
€9,682 million
Millions of euro
Property, plant and equipment
Investment property
Intangible assets
Other impairment losses
Other reversals of impairment losses
Total
2019
4,481
3
1,266
4,221
(289)
9,682
2018
4,132
7
1,075
272
(131)
5,355
Change
349
(4)
191
3,949
(158)
4,327
8.4%
-57.1%
17.8%
-
-
80.8%
In 2019, depreciation, amortization and other impairment losses
commissioning of the Tarapacá and Bocamina I coal-fired
essentially reflect the impairment losses recognized on a num-
plants (by May 31, 2020, and December 31, 2023, respec-
ber of coal-fired plants in Italy, Spain, Chile and Russia for a total
tively) within the scope of the decarbonization process that
of €4,010 million, including related decommissioning charges.
has begun in the country (€356 million);
These impairment losses are essentially attributable to:
> the reduced competitiveness of plants with higher CO2
emissions compared with other technologies, particularly in
> the adjustment (€127 million) to the fair value of the Reft-
inskaya plant as a result of its classification as held for sale
following the binding agreement approved by the parties
Spain and Italy, based on the changing characteristics of the
in June 2019.
market in terms of commodity prices and increased com-
pliance costs in relation to CO2 emissions, as well as the
additional penalties, particularly in Italy, due to introduction
The change also includes the depreciation of right-of-use as-
sets, which, as of January 1, 2019, are subject to depreciation
over the term of the lease agreement in application of IFRS
of new capacity-market regulations for the remuneration
16 (€203 million).
mechanism for available capacity, which restricts the scope
of application for plants with higher CO2 emissions;
These effects were partially offset by reversals of impair-
ment for gas plants in Italy in the amount of €265 million in
> agreements with the Chilean government for the early de-
response to impairment testing.
224
Consolidated Annual Report 2019 In 2018, this aggregate included the impairment of biomass
million), and of the Alcúdia power plant in Spain (€82 million).
assets in Italy (€94 million), of the assets of Nuove Energie
These effects were partially offset by the reversal of impair-
(€24 million), of the Augusta and Bastardo power plants (€23
ment for the Hellas CGU (€117 million).
9.f Other operating expenses - €7,276 million
Millions of euro
System charges - emissions allowances
Charges for energy efficiency certificates
Charges for purchases of green certificates
Losses on disposal of property, plant and equipment, and intangible assets
Taxes and duties
Gain/(Loss) on derivatives on the purchase of commodities with physical
delivery (1)
Other
Total
2019
430
416
62
76
1,035
4,583
674
7,276
2018
443
607
41
61
1,126
(1,120)
(509)
1,769
Change
(13)
(191)
21
15
(91)
5,703
1,183
5,507
-2.9%
-31.5%
51.2%
24.6%
-8.1%
-
-
-
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
Other operating expenses increased by €5,507 million mainly
This change was partially offset by a decrease in environmen-
due to the reclassifications in response to the IFRIC Agenda
tal compliance costs in Italy and a reduction in taxes in Spain
Decision of March 2019 concerning the recognition of non-fi-
for suspension (in accordance with Royal Decree no. 15/2015
nancial transactions with physical delivery within the scope of
of October 5, 2018) of the application of taxes on conventional
IFRS 9. For more information, see paragraph 4.3 of the notes
thermal power generation and on the consumption of hydro-
to the consolidated financial statements.
carbons used in generation.
9.g Capitalized costs - €(2,355) million
Millions of euro
Personnel
Materials
Other
Total
2019
(899)
(980)
(476)
2018
(836)
(852)
(576)
(2,355)
(2,264)
Change
(63)
(128)
100
(91)
-7.5%
-15.0%
-17.4%
-4.0%
Capitalized costs increased by €91 million, mainly for the de-
Infrastructure and Networks Business Line in Colombia, Peru
velopment and execution of increased investment within the
and Italy.
225
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 10. Net income/(expense) from commodity risk management -
€(733) million
Millions of euro
Income:
- income from cash flow hedge derivatives
- income from derivatives at fair value through profit or loss (1)
Total income
Expense:
- expense on cash flow hedge derivatives
- expense on derivatives at fair value through profit or loss (1)
Total expense
NET INCOME/(EXPENSE) FROM COMMODITY RISK MANAGEMENT
2019
2018
Change
200
1,311
1,511
(23)
(2,221)
(2,244)
(733)
93
3,910
4,003
(68)
(3,403)
(3,471)
532
107
(2,599)
(2,492)
45
1,182
1,227
(1,265)
-
-66.5%
-62.3%
-66.2%
-34.7%
-35.4%
-
(1) The 2018 figures have been adjusted to take account of the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) contained
in the Agenda Decision of March 2019, which involved changes in the classification, with no impact on margins, of the effects of purchase and sales contracts
for commodities measured at fair value through profit or loss (for more details, see note 4.3 of the consolidated financial statements).
Net expense from the management of commodity risk amount-
> net expense on derivatives at fair value through profit or
ed to €733 million for 2019 (compared with net income of €532
loss in the amount of €910 million (compared with net in-
million in 2018), which can be broken down as follows:
come of €507 million in 2018);
> net income on cash flow hedge derivatives in the amount of
For more information on derivatives, see note 46 “Deriva-
€177 million (compared with net income of €25 million in 2018);
tives and hedge accounting”.
11. Net financial income/(expense) from derivatives - €342 million
Millions of euro
Income:
- income from derivatives designated as hedging derivatives
- income from derivatives at fair value through profit or loss
Total income
Expense:
- expense on derivatives designated as hedging derivatives
- expense on derivatives at fair value through profit or loss
Total expense
TOTAL FINANCIAL INCOME/(EXPENSE) FROM DERIVATIVES
2019
2018
Change
1,120
364
1,484
(538)
(604)
(1,142)
342
1,142
851
1,993
(408)
(1,124)
(1,532)
461
(22)
(487)
(509)
(130)
520
390
(119)
-1.9%
-57.2%
-25.5%
31.9%
-46.3%
25.5%
-25.8%
Net income from derivatives on interest and exchange rates
loss in the amount of €240 million (compared with net
amounted to €342 million for 2019 (compared with a net in-
expense of €273 million in 2018).
come balance of €461 million in 2018), which can be broken
down as follows:
The net balances recognized in 2019 on both hedging and tra-
> net income on derivatives designated as hedging derivatives
ding derivatives mainly refer to the hedging of exchange risk.
in the amount of €582 million (compared with net income of
For more information on derivatives, see note 46 “Derivatives
€734 million in 2018), mainly in respect of cash flow hedges;
and hedge accounting”.
> net expense on derivatives at fair value through profit or
226
Consolidated Annual Report 2019 12. Other net financial income/(expense) - €(2,786) million
Other financial income
Millions of euro
Interest income from financial assets
(current and non-current):
- interest income at effective rate on non-current securities and receivables
- interest income at effective rate on short-term financial investments
Total interest income at the effective interest rate
Financial income on non-current securities at fair value through profit
or loss
Exchange gains
Income on equity investments
Other income
TOTAL FINANCIAL INCOME
2019
2018
Change
126
162
288
-
915
4
1,262
2,469
93
163
256
-
910
12
1,190
2,368
33
(1)
32
-
5
(8)
72
101
35.5%
-0.6%
12.5%
-
0.5%
-66.7%
6.1%
4.3%
Financial income, in the amount of €2,469 million, increased
of the consolidated financial statements for the year ended
by €101 million compared with the previous year, due mainly
December 31, 2019 for more information.
to an increase in “Other income” as a result of the application
This was partly offset by the effect of the adjustment to fair
to the Argentine companies of IAS 29 related to accounting
value in 2018 of Enel Produzione’s financial receivable arising
for hyperinflationary economies (+€179 million). See note 4.2
from the sale of 50% of Slovak Power Holding (€134 million).
Other financial expense
Millions of euro
Interest expense on financial debt
(current and non-current):
- interest on bank borrowings
- interest expense on bonds
- interest expense on other borrowings
Total interest expense
Exchange losses
Accretion of post-employment and other employee benefits
Accretion of other provisions
Charges on equity investments
Other expenses
TOTAL FINANCIAL EXPENSE
2019
2018
Change
386
2,030
183
2,599
1,229
135
186
2
1,104
5,255
408
1,953
127
2,488
1,378
107
169
1
734
4,877
(22)
77
56
111
(149)
28
17
1
370
378
-5.4%
3.9%
44.1%
4.5%
-10.8%
26.2%
10.1%
-
50.4%
7.8%
Other financial expense amounted to €5,255 million, a total
economies. See note 4.2 of the consolidated financial
increase of €378 million compared with 2018. The change re-
statements for the year ended December 31, 2019 for
flects the following factors in particular:
more information;
> an increase in other expenses of €370 million, due largely
- the effect of the recognition in 2018 of the reversal
to:
of impairment recognized on the financial receivable
- an increase of €252 million in financial expense as a
arising from the sale of 50% of Slovak Power Holding
result of the application to the Argentine companies
(€186 million);
of IAS 29 related to accounting for hyperinflationary
- a reduction of €83 million in financial expense due to an
227
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements increase in the capitalization of charges;
> a decrease of €149 million in exchange rate losses, primar-
> an increase in interest expense on financing in the amount
ily reflecting developments in the exchange rates associat-
of €111 million. This reflected the increase in interest ex-
ed with net financial debt denominated in currencies other
pense on bonds (€77 million) and financial expense from
than the euro.
the application of IFRS 16 (€54 million);
13. Share of income/(losses) of equity investments accounted for
using the equity method - €(122) million
Millions of euro
Share of income of associates
Share of losses of associates
Total
2019
120
(242)
(122)
2018
521
(172)
349
Change
(401)
(70)
(471)
-77.0%
-40.7%
-
The share of income and losses of equity investments ac-
Holding (€362 million), which had been written down multiple
counted for using the equity method deteriorated by €471
times in previous years. This reduction also shows the effects
million compared with the previous year. In addition to reflect-
of reacquiring controlling interests in 13 companies from EG-
ing the Group’s shares in companies measured using the eq-
PNA REP, which resulted in a change in the scope of consol-
uity method, the change was due mainly to the 2018 adjust-
idation and the recognition of a capital loss by EGPNA REP.
ment to the fair value of the 50% stake held in Slovak Power
14. Income taxes - €836 million
Millions of euro
Current taxes
Adjustments for income taxes relating to prior years
Total current taxes
Deferred tax expense
Deferred tax income
TOTAL
2019
2,137
(132)
2,005
(567)
(602)
836
2018
2,014
(150)
1,864
92
(105)
1,851
Change
123
18
141
(659)
(497)
6.1%
-12.0%
7.6%
-
-
(1,015)
-54.8%
The decrease in income taxes in 2019 compared with the pre-
Costanera and Central Dock Sud as a result of exercising the
vious year is essentially due to the reduction in income.
“revalúo impositivo” option for tax incentives. In return for
In percentage terms, the tax burden has decreased due, in par-
payment of a tax in lieu, this mechanism allows the remea-
ticular, to:
surement of certain assets for tax purposes, resulting in the
> the release of €494 million in deferred taxes by Enel Di-
recognition of deferred tax assets and the greater deductibi-
stribuição São Paulo following the merger with Enel Brasil
lity of future depreciation;
Investimentos Sudeste SA (Enel Sudeste);
> the reversal of deferred tax liabilities by EGPNA as an an-
> the agreement with the tax authorities concerning the “pa-
cillary effect of the acquisition of a number of companies
tent box” option, which provides for preferential taxation
from EGPNA REP;
of earnings resulting from the use of intellectual property
> the deductibility of goodwill resulting from the merger of
(€53 million);
GasAtacama into Enel Generación Chile.
> a decrease in taxes (in the amount of €35 million) recognized
These effects were partially offset by recognition in the previous
in Argentina by the generation companies Enel Generación
year of the following:
228
Consolidated Annual Report 2019 > greater deferred tax assets on past losses by Enel Dis-
> a reduction in deferred tax liabilities (€61 million) following
tribuição Goiás as a result of the efficiency improvement
the tax reform in Colombia, which led to a reduction in pro-
measures implemented by the Group subsequent to the
gressive tax rates from 33% to 30%.
acquisition (€274 million);
For more information on changes in deferred tax assets and lia-
> a decrease in income taxes in Italy for the recognition of
bilities, see note 22.
deferred tax assets (€85 million) for the past losses of
The following table provides a reconciliation of the theoretical tax
3Sun following the merger with Enel Green Power SpA;
rate and the effective tax rate.
Millions of euro
Income before taxes
Theoretical taxes
Change in tax effect on impairment losses, capital gains and negative
goodwill
Reversal of deferred taxes in Brazil
Recognition of deferred tax assets on past losses in Brazil
Recognition of deferred tax assets on past losses in Italy
Change in tax effect on Kino gain and other items in Mexico
Impact on deferred taxation of changes in tax rates
Patent box mechanism in Italy
Remeasurement for tax purposes of certain assets in Argentina
IRAP
Other differences, effect of different tax rates abroad compared with the
theoretical rate in Italy, and other minor items
Total
2019
4,312
1,035
93
(494)
-
-
-
(33)
(50)
(35)
235
85
836
24.0%
24.0%
2018
8,201
1,968
(180)
-
(274)
(86)
100
(61)
-
-
237
147
1,851
15. Basic and diluted earnings per share
Both of these indicators have been calculated based on
10,166,331,854, adjusted for the 1,549,152 treasury shares
an average number of ordinary shares for the year of
with a par value of €1.00 each (0 at December 31, 2018).
Net income from continuing operations attributable to shareholders of the
Parent Company (millions of euro)
Net income from discontinued operations attributable to shareholders of
the Parent Company (millions of euro)
Net income attributable to shareholders of the Parent Company (millions
of euro)
Number of ordinary shares
Dilutive effect of stock options
Basic and diluted earnings per share (euro)
Basic and diluted earnings from continuing operations per share (euro)
Basic and diluted earnings from discontinued operations per share (euro)
2019
2,174
-
2,174
2018
Change
4,789
(2,615)
-54.6%
-
-
-
4,789
(2,615)
-54.6%
10,166,331,854
10,166,679,946
(348,092)
-
0.21
0.21
-
-
0.47
0.47
-
-
(0.26)
(0.26)
-
-
-
-55.3%
-55.3%
-
229
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 16. Property, plant and equipment - €79,809 million
The breakdown of and changes in property, plant and equipment for 2019 is shown below.
Millions of euro
Cost net of accumulated
impairment
Accumulated depreciation
Balance at Dec. 31, 2018
Capital expenditure
IFRS 16 as at Jan. 1, 2019
Assets entering service
Exchange differences
Change in the scope of
consolidation
Disposals
Depreciation
Impairment losses
Reversals of impairment
losses
Other changes
Reclassifications from/to
assets held for sale
Total changes
Cost net of accumulated
impairment
Accumulated depreciation
Balance at Dec. 31, 2019
Land Buildings
Plant and
machinery
Industrial and
commercial
equipment
Other
assets
Leased
assets
Leasehold
improvements
655
-
655
3
-
18
(5)
9
(6)
-
(31)
-
20
-
8
9,919
158,257
5,303
4,616
43
-
313
31
105
(13)
(189)
(286)
115
151
(90)
180
94,314
63,943
1,742
-
3,451
(322)
834
(66)
(3,885)
(3,230)
167
1,140
(310)
(479)
663
10,265
160,068
-
663
5,469
4,796
96,604
63,464
503
345
158
33
-
1
-
-
(2)
(26)
(1)
-
(2)
-
3
527
366
161
1,401
1,077
1,095
306
61
-
39
(3)
2
(3)
(91)
(3)
-
14
-
363
714
7
1,370
-
9
51
(64)
(260)
-
-
174
-
16
1,287
1,471
2,614
1,149
613
322
2,001
411
264
147
3
-
15
-
2
(1)
(30)
-
-
-
-
(11)
427
291
136
Assets under
construction
and advances
Total
6,092
178,315
-
101,684
6,092
6,340
-
(3,837)
(144)
(18)
-
-
(394)
-
240
(13)
76,631
8,232
1,370
-
(434)
985
(155)
(4,481)
(3,945)
282
1,737
(413)
2,174
3,178
8,266
184,301
-
104,492
8,266
79,809
Plant and machinery includes assets to be relinquished free
For more information on leased assets, see note 18 below.
of charge with a net carrying amount of €8,976 million (€8,747
million at December 31, 2018), largely regarding power plants
The types of capital expenditure made during 2019 are sum-
in Iberia and Latin America amounting to €4,267 million
marized below. These expenditures, totaling €8,924 million,
(€4,390 million at December 31, 2018), and the electricity
increased by €2,394 million from 2018, an increase that was
distribution network in Latin America totaling €3,911 million
particularly concentrated in solar power plants.
(€3,806 million at December 31, 2018).
Millions of euro
Power plants:
- thermal
- hydroelectric
- geothermal
- nuclear
- alternative energy sources
Total power plants
Electricity distribution networks (1)
Land, buildings, and other assets and equipment
TOTAL
2019
602
382
145
130
3,695
4,954
3,874
96
8,924
2018
400
504
114
156
2,170
3,344
3,090
96
6,530
(1) The figure for 2019 includes €692 million in infrastructure investments within the scope of IFRIC 12 (€271 million in 2018).
230
Consolidated Annual Report 2019 Capital expenditure on power plants amounted to €4,954 million,
an increase of €1,610 million on the previous year, essentially re-
flecting increased investment in alternative energy plants. Cap-
In Spain, the deterioration in the market in relation to devel-
opments in commodity prices and the functioning of the CO2
emissions market in the 3rd Quarter of 2019 compromised
ital expenditure on power plants is mainly attributable to wind
the competitiveness of coal-fired plants. In Italy, in addition to
farms in North America, Spain, Brazil, South Africa and Greece,
a deterioration in market conditions, implementation of new
and on solar plants in the United States, Brazil and Spain.
capacity market regulations for the remuneration mechanism
Capital expenditure on the electricity distribution network
amounted to €3,874 million, an increase of €784 million
compared with the previous year, and mainly concerned ser-
for available capacity restricted the scope of future application
for plants with higher CO2 emission, excluding coal technolo-
gy from the electricity market. For these reasons, the carrying
vice-quality improvements in Italy and Brazil and the produc-
amount of a number of coal-fired plants in Italy and Spain,
tion of smart meters in the amount of €730 million.
including the associated dismantling costs, has been written
The change in the scope of consolidation in 2019 mainly con-
These effects were partially offset by reversals of impairment
cerns the acquisition of controlling interests in a number of
for gas plants in Italy in the amount of €265 million following
down by a total of €3,527 million.
companies of EGPNA REP, a joint venture held equally by EG-
impairment testing.
PNA (now Enel North America) and General Electric Capital’s
Energy Financial Services, companies that were previously
Reclassifications from/to assets held for sale mainly concern
measured using the equity method (€1,033 million), and the
the Reftinskaya GRES plant, which was sold by Enel Russia to
acquisition of Tradewind Energy, a company developing renew-
JSC Kuzbassenergo in the 4th Quarter of 2019.
able energy projects in the United States, and YouSave SpA.
Other changes include the provisioning of decommissioning
Impairment mainly concerns adjustments to the carrying amount
costs and plant restoration charges in Italy and Spain in the
of a number of coal-fired plants in Italy, Spain, Chile and Russia.
amount of €825 million, mainly in respect of coal-fired plants,
In Chile, specifically, the value of two plants has been adjust-
the effects of IAS 29 on property, plant and equipment for a to-
ed due in part to the agreement reached with the Chilean
tal of €462 million and the effect of capitalizing interest on loans
government concerning their early decommissioning, and the
specifically dedicated to capital expenditures in the amount of
value of the Reftinskaya coal-fired plant in Russia has been
€159 million (€77 million in 2018), as detailed below.
adjusted due to its sale.
Millions of euro
Enel Green Power SpA
Enel Green Power Brazil
Enel Green Power North America
Enel Green Power México
Enel Green Power South Africa
Enel Américas Group
Enel Chile Group
Endesa Group
Enel Green Power España Group
Enel Russia Group
Enel Green Power India Group
Enel Produzione
Enel Finance International
Total
2019
Rate %
2018
Rate %
Change
1.2%
5.8%
0.2%
7.0%
6.4%
8.3%
8.0%
1.8%
1.8%
9.1%
7.5%
4.8%
1.6%
4
16
16
36
17
14
12
3
3
5
3
9
21
159
1.7%
0.9%
0.5%
5.2%
6.3%
8.5%
7.7%
1.9%
-
-
-
4.8%
-
4
19
9
3
6
16
9
4
-
-
-
7
-
77
-
(3)
7
33
11
(2)
3
(1)
3
5
3
2
21
82
-
-15.8%
77.8%
-
-
-12.5%
33.3%
-25.0%
-
-
-
28.6%
-
-
At December 31, 2019, contractual commitments to purchase property, plant and equipment amounted to €763 million.
231
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 17. Infrastructure within the scope of “IFRIC 12 - Service concession
arrangements”
Service concession arrangements, which are recognized in
The following table summarizes the salient details of those
accordance with IFRIC 12, regard certain infrastructure serv-
concessions.
ing concessions for electricity distribution in Brazil.
Millions of euro
Enel Distribuição
Rio
Enel Distribuição
Ceará
Enel Green Power
Mourão
Enel Green Power
Paranapanema
Celg Distribuição
Enel Green Power
Volta Grande
Enel Distribuição
São Paulo
Total
Grantor
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Brazilian
government
Activity
Electricity
distribution
Electricity
distribution
Power
generation
Power
generation
Electricity
distribution
Power
generation
Electricity
distribution
Country
Concession
period
Concession
period
remaining
Renewal
option
Brazil
1997-2026
7 years
Brazil
1998-2028
9 years
Brazil
2016-2046
27 years
Brazil
2016-2046
27 years
Brazil
2015-2045
26 years
Brazil
2017-2047
28 years
Brazil
1998-2028
9 years
Yes
Yes
No
No
No
No
No
Amount
recognized
among assets
from contracts
with clients at
Dec. 31, 2019
Amount
recognized
among
financial
assets at Dec.
31, 2019
Amount
recognized
among
intangible
assets at Dec.
31, 2019
134
61
-
-
99
-
185
479
800
525
6
30
33
316
1,003
2,714
641
591
-
-
491
-
893
2,616
The value of the assets at the end of the concessions classified under financial assets has been measured at fair value. For
more information, see note 47 “Assets measured at fair value”.
18. Leases
As at January 1, 2019, the effects on property, plant and equipment of the application of IFRS 16 totaled €1,370 million. The
table below shows the changes in right-to-use assets in 2019.
Leased
land
Leased
buildings
Leased
plant
Other leased
assets
10
520
4
(23)
34
545
36
679
-
(124)
10
601
518
-
5
(30)
(5)
488
150
171
-
(83)
129
367
Total
714
1,370
9
(260)
168
2,001
Millions of euro
Total at December 31, 2018
IFRS 16 as at Jan. 1, 2019
Exchange rate differences
Depreciation
Other changes
Total at December 31, 2019
232
Consolidated Annual Report 2019 Lease liabilities and changes during the year are shown in the table below.
Millions of euro
Total at December 31, 2018
IFRS 16 as at Jan. 1, 2019
Increases
Payments
Other changes
Total at December 31, 2019
of which medium to long term
of which short term
Millions of euro
Depreciation of right-of-use assets
Interest expense on lease liabilities
Expense relating to short-term leases (included in cost for services and other materials)
Expense relating to leases of low-value assets (included in cost for services and other materials)
Variable lease payments (included in cost for services and other materials)
Total
19. Investment property - €112 million
Investment property at December 31, 2019, came to €112 million, a decrease of €23 million year on year.
Millions of euro
Cost net of accumulated impairment
Accumulated depreciation
Balance at Dec. 31, 2018
Depreciation
Impairment losses
Other changes
Total changes
Cost net of accumulated impairment
Accumulated depreciation
Balance at Dec. 31, 2019
657
1,370
224
(212)
(75)
1,964
1,689
275
2019
260
57
50
4
9
380
179
44
135
(3)
(24)
4
(23)
157
45
112
The Group’s investment property consists of properties in
The change for the year was mainly due to impairment reco-
Italy, Spain, Brazil and Chile, which are free of restrictions on
gnized on a number of assets of Enel Italia.
the sale of the investment property or the remittance of in-
come and proceeds of disposal. In addition, the Group has
For more information on the valuation of investment proper-
no contractual obligations to purchase, construct or develop
ty, see notes 47 “Assets measured at fair value”, and 47.1
investment property or for repairs, maintenance or enhance-
“Fair value of other assets”.
ments.
233
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 20. Intangible assets - €19,089 million
A breakdown of and changes in intangible assets for 2019 are shown below:
Industrial
patents &
intellectual
property
rights
Concessions,
licenses,
trademarks
and similar
rights
Development
costs
Service
concession
arrangements Other
Leasehold
improvements
Assets under
development
and advances
Contract
costs
Total
42
19
23
1
12
-
4
-
2,352
1,987
365
120
306
(4)
1
-
(4)
(226)
-
-
(13)
-
-
46
23
23
(2)
-
22
-
217
2,767
2,185
582
15,246
1,705
13,541
1
6
(104)
1
-
(206)
(1)
4
4
-
6,899
3,294
4,119
2,780
-
-
(45)
-
(14)
2,479
815
46
255
(2)
50
-
(373)
(283)
-
-
(82)
-
269
146
-
-
(295)
(163)
130
15,083
1,837
13,246
6,987
3,747
4,370
2,802
2,617
945
-
-
-
-
-
-
7
-
-
-
-
-
-
7
10
3
7
985
-
985
562
(579)
(18)
144
(1)
-
(3)
-
(18)
(12)
75
986 29,804
481 10,790
505 19,014
293
1,023
-
-
-
1
-
(173)
207
(14)
(187)
(1,279)
(1)
-
(2)
-
104
(89)
4
408
(12)
75
1,060
1,275 30,975
-
666 11,886
1,060
609 19,089
Millions of euro
Cost net of accumulated
impairment
Accumulated depreciation
Balance at Dec. 31, 2018
Capital expenditure
Assets entering service
Exchange differences
Change in the scope of
consolidation
Disposals
Depreciation
Impairment losses
Reversals of impairment
losses
Other changes
Reclassifications from/to
assets held for sale
Total changes
Cost net of accumulated
impairment
Accumulated depreciation
Balance at Dec. 31, 2019
In 2019, intangible assets registered a net increase of €75 mil-
and applications, making it possible to simplify our organiza-
lion. The rise mainly reflects the capitalization of the Group’s new
tional model and redesign certain key processes and oper-
investments in digital transformation initiatives and a number of
ating approaches, increasing their effectiveness and overall
acquisitions of highly innovative industrial assets.
efficiency.
Industrial patents and intellectual property rights relate main-
The item also includes the portion of the value of patents that
ly to costs incurred in purchasing software and open-ended
can be recognized in accordance with the provisions of the in-
software licenses. The most important applications relate to
ternational accounting standards. Amortization is calculated on a
invoicing and customer management, the development of
straight-line basis over the asset’s residual useful life.
Internet portals and the management of company systems.
Concessions, licenses, trademarks and similar rights include the
The increase recorded in 2019 (+59%) is mainly due to the
costs incurred for the acquisition of customers by the foreign
Group’s investments in digital transformation initiatives.
electricity distribution and gas sales companies. Amortization is
Among these, the “Digitaly” project deserves special men-
calculated on a straight-line basis over the term of the average
tion (€55.5 million). It seeks to introduce digital technologies
period of the relationship with customers or of the concessions.
234
Consolidated Annual Report 2019 The following table reports service concession arrangements that do not fall within the scope of IFRIC 12 and had a balance as at
December 31, 2019.
Millions of euro
Endesa Distribución Eléctrica
Codensa
Enel Distribución Chile
(formerly Chilectra)
Enel Distribución Perú (formerly
Empresa de Distribución
Eléctrica de Lima Norte)
E- Distribut¸ie Muntenia
Grantor
-
Republic of
Colombia
Republic of
Chile
Republic of
Peru
Romanian
Ministry for the
Economy
Activity
Electricity
distribution
Electricity
distribution
Electricity
distribution
Electricity
distribution
Electricity
distribution
Country
Concession
period
Concession
period
remaining
Renewal
option
at Dec. 31,
2019
Initial fair
value
Spain
Indefinite
Indefinite
Colombia
Indefinite
Indefinite
Chile
Indefinite
Indefinite
Peru
Indefinite
Indefinite
-
-
-
-
5,678
5,673
1,469
1,839
1,433
1,667
638
548
Romania
2005-2054
34 years
Yes
131
191
The item includes assets with an indefinite useful life in the
license, as well as customer lists acquired externally and other
amount of €9,218 million (€9,271 million at December 31,
intangible assets of various types.
2018), essentially accounted for by concessions for distribution
activities in Spain (€5,678 million), Colombia (€1,469 million),
The change in the scope of consolidation for 2019 mainly refers
Chile (€1,433 million), and Peru (€638 million), for which there is
to the companies acquired in North America from EGPNA REP.
no statutory or currently predictable expiration date. On the ba-
sis of the forecasts developed, cash flows for each CGU, with
Impairment losses amounted to €89 million in 2019. For more
which the various concessions are associated, are sufficient
information, see note 9.e.
to recover the carrying amount. The change during the year is
essentially attributable to changes in exchange rates. For more
Other changes include the reclassification of public-to-pri-
information on service concession arrangements, see note 17.
vate service concession agreements (under development) to
non-current assets deriving from contracts with customers in
“Other” intangible assets mainly consist of investments in dig-
Brazil in application of IFRS 15.
ital applications for which there is no ownership title or use
235
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 21. Goodwill - €14,241 million
Millions of euro
at Dec. 31, 2018
Cost
Cumulative
impairment
Net
car-
rying
amount
11,177
1,209
276
561
530
1,420
54
106
328
-
579
23
426
3
(2,392)
8,785
-
-
-
-
-
-
(11)
-
-
-
(3)
(13)
-
1,209
276
561
530
1,420
54
95
328
-
579
20
413
3
Iberia (1)
Chile
Argentina
Peru
Colombia
Brazil
Central America
Enel Green Power North
America
Enel X North America
PayTipper (2)
Market Italy (3)
Enel Green Power Italy
Romania (4)
Tynemouth Energy
Total
16,692
(2,419)
14,273
Change
in
consol.
Exchange
rate diff.
Impairment
losses
Offsetting
cost with
accum.
impairment
Other
changes
at Dec. 31, 2019
Cost
Cumulative
impairment
Net
carrying
amount
-
-
-
-
-
-
(13)
-
-
19
-
-
-
-
6
-
-
-
-
-
(9)
1
2
7
-
-
-
(10)
-
(9)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(27)
38
-
-
-
-
-
-
-
-
-
3
-
-
- 11,177
(2,392)
8,785
-
-
-
-
-
-
-
-
-
-
-
(2)
-
1,209
276
561
530
1,411
42
70
335
19
579
20
414
3
-
-
-
-
-
-
-
-
-
-
-
(13)
-
1,209
276
561
530
1,411
42
70
335
19
579
20
401
3
(27)
41
(2) 16,646
(2,405)
14,241
(1) Includes Endesa and Enel Green Power España.
(2) The figure can be subject to change once the purchase-price allocation process has been finalized. For more information, see note 6.
(3) Includes Enel Energia.
(4) Includes E-Distribut¸ie Muntenia, Enel Energie Muntenia and Enel Green Power Romania.
The €32 million decrease in goodwill can be attributed most-
counted cash flow models, which involve estimating expect-
ly to impairment in the amount of €27 million, which con-
ed future cash flows and applying an appropriate discount
cerns the impairment loss on the wind farm of Padoma Wind
rate, selected on the basis of market inputs such as risk-free
Power, a company of the Enel Green Power North America
rates, betas and market-risk premiums.
Group.
Although the CGUs have not changed since last year, the im-
pairment tests were carried out this year at the level of the
The exchange rate differences are mainly due to unfavorable
operating segment within the CGU resulting from the combi-
exchange rate developments in Romania and Brazil, which
nation of Business Lines and countries/regions.
were partially offset by the positive impact of the US dollar.
Cash flows were determined on the basis of the best infor-
mation available at the time of the estimate, taking account of
The criteria used to identify the cash generating units (CGUs)
the specific risks of each CGU, and drawn:
were essentially based – in line with management’s strategic
> for the explicit period, from the business plan approved by
and operational vision – on the specific characteristics of their
the Board of Directors of the Parent Company on November
business, on the operational rules and regulations of the mar-
25, 2019, containing forecasts for volumes, revenue, oper-
kets in which Enel operates, on the corporate organization,
ating costs, capital expenditure, industrial and commercial
and on the level of reporting monitored by management.
organization and developments in the main macroeconom-
The recoverable value of the goodwill recognized was esti-
rates) and commodity prices. The explicit period of cash
mated by calculating the value in use of the CGUs using dis-
flows considered in impairment testing was five years;
ic variables (inflation, nominal interest rates and exchange
236
Consolidated Annual Report 2019 Goodwill matrix
Millions of euro
Italy
Enel Green Power
Enel Energia
Other
Iberia
Latin America
Argentina
Brazil
Chile
Colombia
Peru
Panama
Europe and Euro-
Mediterranean
Affairs
Romania
Other countries
North America
United States and
Canada
Mexico
Total
Thermal
Generation
and Trading
Enel Green
Power
Infrastructure
and Networks
End-user
Markets
Enel X
Services
Other
Total
-
-
-
-
-
44
-
-
-
-
43
-
3
-
3
-
-
-
20
20
-
-
1,190
1,961
40
397
996
307
198
23
-
-
-
89
70
19
-
-
-
-
5,788
2,005
236
1,014
213
223
320
-
342
342
-
-
-
-
579
-
579
-
1,807
-
-
-
-
-
-
-
59
59
-
-
-
-
47
3,260
8,135
2,445
19
-
-
19
-
-
-
-
-
-
-
-
-
-
-
335
335
-
354
-
-
-
-
-
-
-
-
-
-
35
(35)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
618
20
579
19
8,785
4,010
276
1,411
1,209
530
561
23
404
401
3
424
405
19
35
(35)
14,241
> for subsequent years, from assumptions concerning long-
take account of: (i) the value resulting from the remaining
term developments in the main variables that determine
useful lives of the plants; and (ii) the residual value, in the
cash flows, the average residual useful life of assets or the
event of plant decommissioning, associated with licensing
duration of the concessions.
rights, the competitiveness of the production facilities (in
More specifically, the terminal value calculated based on the
terms of natural resources), and network interconnectivity.
specific characteristics of the businesses related to the vari-
The nominal growth rate is equal to the long-term rate of
ous CGUs subject to impairment testing:
growth in electricity and/or inflation (depending on the coun-
> perpetuity, for the businesses of large-hydro (LH) power
try and business involved) and in any case no higher than the
generation and of distribution, in which the licenses and
average long-term growth rate of the reference market.
public concessions are of a long-term nature and are easily
The value in use calculated as described above was found to
renewable; as well as for the Enel X businesses, as they
be greater than the amount recognized on the balance sheet.
feature the development of specific know-how that is sus-
In order to verify the robustness of the value in use of the
tainable over the long term;
CGUs, sensitivity analyses were conducted for the main driv-
> annuity, for CGUs that are predominantly characterized by
ers of the values, in particular WACC, the long-term growth
retail business, for which the residual life is, therefore, es-
rate and margins, the outcomes of which fully supported that
sentially correlated with the average duration of the cus-
value.
tomer relationships; as well as for businesses of conven-
tional thermal power generation (G&T). It is also used for
the renewable energy (Enel Green Power) businesses to
237
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The table below reports the composition of the main goodwill
and the time horizon over which the expected cash flows
values according to the company to which the cash genera-
have been discounted.
ting unit (CGU) belongs, along with the discount rates applied
Millions of euro
Amount
Growth rate (1)
Pre-tax WACC discount
rate (2)
Explicit period of cash
flows
Terminal value (3)
at Dec. 31, 2019
Amount
Growth rate (1)
rate (2) Explicit period of cash flows
Terminal value (3)
Pre-tax WACC discount
at Dec. 31, 2018
8,785
1,209
1,420
276
561
530
54
95
328
579
20
413
n/a
3
1.61%
2.63%
7.14%
3.38%
2.97%
4.00%
1.46%
2.27%
2.27%
0.73%
0.99%
2.37%
n/a
n/a
6.88%
7.53%
20.07%
6.82%
9.30%
9.46%
8.98%
6.83%
10.31%
10.98%
6.65%
6.78%
n/a
n/a
5 years
Perpetuity/24 years
5 years
Perpetuity/25 years
5 years
Perpetuity
5 years
Perpetuity/26 years
5 years
Perpetuity/28 years
Perpetuity/26 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
n/a
n/a
24 years
25 years
Perpetuity
15 years
Perpetuity/23 years
Perpetuity/18 years
n/a
n/a
Iberia (4)
Chile
Argentina
Peru
Colombia
Brazil
Central America
Enel Green Power
North America
Enel X North America
Market Italy (5)
Enel Green Power
Italy
Romania (6)
PayTipper SpA
Tynemouth Energy
8,785
1,209
276
561
530
1,411
42
70
335
579
20
401
19
3
1.80%
2.07%
6.36%
2.39%
2.97%
3.61%
2.01%
2.01%
2.01%
0.48%
1.03%
2.00%
n/a
n/a
4.59%
7.41%
21.84%
7.46%
9.01%
10.64%
9.68%
6.58%
10.89%
10.23%
6.15%
7.27%
n/a
n/a
5 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
Perpetuity/26 years
EGP/9 years G&T
Perpetuity/25 years
EGP/9 years G&T
Perpetuity/1 year
G&T/4 years LH
Perpetuity/23 years
EGP/9 years G&T
Perpetuity/27 years
EGP/16 years G&T
Perpetuity/26 years
EGP/7 years G&T
22 years
24 years
Perpetuity
15 years
5 years
Perpetuity/25 years
5 years
Perpetuity/17 years
n/a
n/a
n/a
n/a
(1) Perpetual growth rate for cash flows after the explicit forecast period.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
calculated with post-tax cash flows discounted with the post-tax WACC.
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column (G&T = Generation &
Trading, EGP = Enel Green Power, LH = Large Hydro).
(4) Includes Endesa and Enel Green Power España.
(5) Includes Enel Energia.
(6) Includes E-Distribut¸ie Muntenia, Enel Energie Muntenia and Enel Green Power Romania.
At December 31, 2019, impairment tests conducted for the
the countries/regions to which goodwill was allocated found
CGUs and at the level of the operating segments within the
no impairment losses.
CGUs identified at the intersection of the Business Lines and
238
Consolidated Annual Report 2019 Millions of euro
Amount
Growth rate (1)
rate (2)
flows
Terminal value (3)
Amount
Growth rate (1)
rate (2) Explicit period of cash flows
Terminal value (3)
Pre-tax WACC discount
Explicit period of cash
Pre-tax WACC discount
at Dec. 31, 2019
at Dec. 31, 2018
Iberia (4)
Chile
Argentina
Peru
Colombia
Brazil
Central America
Enel Green Power
North America
Enel X North America
Market Italy (5)
Enel Green Power
Italy
Romania (6)
PayTipper SpA
Tynemouth Energy
8,785
1,209
1,411
276
561
530
42
70
335
579
20
401
19
3
1.80%
2.07%
6.36%
2.39%
2.97%
3.61%
2.01%
2.01%
2.01%
0.48%
1.03%
2.00%
n/a
n/a
4.59%
7.41%
21.84%
7.46%
9.01%
10.64%
9.68%
6.58%
10.89%
10.23%
6.15%
7.27%
n/a
n/a
5 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
n/a
n/a
Perpetuity/26 years
EGP/9 years G&T
Perpetuity/25 years
EGP/9 years G&T
Perpetuity/1 year
G&T/4 years LH
Perpetuity/23 years
EGP/9 years G&T
Perpetuity/27 years
EGP/16 years G&T
Perpetuity/26 years
EGP/7 years G&T
22 years
24 years
Perpetuity
15 years
n/a
n/a
5 years
Perpetuity/25 years
5 years
Perpetuity/17 years
(1) Perpetual growth rate for cash flows after the explicit forecast period.
calculated with post-tax cash flows discounted with the post-tax WACC.
(2) Pre-tax WACC calculated using the iterative method: the discount rate that ensures that the value in use calculated with pre-tax cash flows is equal to that
(3) The terminal value has been estimated on the basis of a perpetuity or an annuity with a rising yield for the years indicated in the column (G&T = Generation &
Trading, EGP = Enel Green Power, LH = Large Hydro).
(4) Includes Endesa and Enel Green Power España.
(5) Includes Enel Energia.
(6) Includes E-Distribut¸ie Muntenia, Enel Energie Muntenia and Enel Green Power Romania.
8,785
1,209
276
561
530
1,420
54
95
328
579
20
413
n/a
3
1.61%
2.63%
7.14%
3.38%
2.97%
4.00%
1.46%
2.27%
2.27%
0.73%
0.99%
2.37%
n/a
n/a
6.88%
7.53%
20.07%
6.82%
9.30%
9.46%
8.98%
6.83%
10.31%
10.98%
6.65%
6.78%
n/a
n/a
5 years
Perpetuity/24 years
5 years
Perpetuity/25 years
5 years
Perpetuity
5 years
Perpetuity/26 years
5 years
Perpetuity/28 years
5 years
5 years
5 years
5 years
5 years
5 years
5 years
n/a
n/a
Perpetuity/26 years
24 years
25 years
Perpetuity
15 years
Perpetuity/23 years
Perpetuity/18 years
n/a
n/a
239
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 22. Deferred tax assets and liabilities - €9,112 million
and €8,314 million
The following table details changes in deferred tax assets and
the amount of deferred tax assets offsettable, where permit-
liabilities by type of timing difference and calculated based on
ted, with deferred tax liabilities.
the tax rates established by applicable regulations, as well as
Increase/
(Decrease)
taken to
income
statement
Increase/
(Decrease)
taken to
equity
at Dec. 31,
2018
Change in
the scope of
consolidation
Translation
adjustment
Other
changes
Reclassifications
of assets held
for sale
at Dec. 31,
2019
1,669
726
(11)
(3)
(1)
(7)
1,726
(119)
508
801
869
2,732
8,305
56
37
6
(104)
602
6,638
(623)
403
1,609
8,650
41
15
(567)
(1)
-
(60)
209
1
138
(3)
36
8
41
-
-
-
-
1
(2)
89
-
9
98
(29)
126
(5)
1
(10)
(1)
(45)
(90)
1
(16)
(105)
(57)
7
12
35
116
82
-
115
197
-
-
-
-
-
-
-
-
-
-
-
2,372
1,702
502
786
1,086
2,664
9,112
6,093
481
1,740
8,314
4,743
3,054
891
Millions of euro
Deferred tax assets:
- differences in the value of
intangible assets, property,
plant and equipment
- accruals to provisions
for risks and charges and
impairment losses with
deferred deductibility
- tax loss carried forward
- measurement of financial
instruments
- employee benefits
- other items
Total
Deferred tax liabilities:
- differences on non-current
and financial assets
- measurement of financial
instruments
- other items
Total
Non-offsettable deferred
tax assets
Non-offsettable deferred
tax liabilities
Excess net deferred
tax liabilities after any
offsetting
At December 31, 2019, deferred tax assets, recognized when
Deferred tax liabilities amounted to €8,314 million at Decem-
there is a reasonable certainty of their recoverability, totaled
ber 31, 2019 (€8,650 million at December 31, 2018). They es-
€9,112 million (€8,305 million at December 31, 2018).
sentially include the determination of the tax effects of the
Deferred tax assets increased by €809 million during the year
value adjustments to assets acquired as part of the final al-
due, essentially, to taxes recognized in 2019 on the impair-
location of the cost of acquisitions made in the various years
ment of coal-fired plants in Italy and Spain.
and the deferred taxation in respect of the differences betwe-
It should also be noted that deferred tax assets (in the amount
en depreciation charged for tax purposes, including accele-
of €279 million) were not recorded in relation to prior tax los-
rated depreciation, and depreciation based on the estimated
ses in the amount of €965 million because, on the basis of
useful lives of assets.
current estimates of future taxable income, it is not certain
Deferred tax liabilities decreased by a total of €336 million
that such assets will be recovered.
due, in particular, to the release of €494 million in deferred ta-
240
Consolidated Annual Report 2019 xes of Enel Distribuição São Paulo following the merger with
of net assets on the books at the time of the acquisition of
Enel Brasil Investimentos Sudeste SA (Enel Sudeste), which
Enel Distribuição São Paulo. This decrease was partially offset
nullified the differences between fiscal and carrying amounts
by the effects of hyperinflation.
241
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 23. Equity investments accounted for using the equity method -
€1,682 million
Investments in joint arrangements and associated companies accounted for using the equity method are as follows.
Millions of euro
at Dec. 31,
2018
% held
Income
effect
Change in
consol.
Dividends
Reclassifications
from/to assets
held for sale
Other
changes
Joint arrangements
Slovak Power Holding
497
50.0%
72
43.8%
(7)
EGPNA Renewable
Energy Partners
OpEn Fiber
Zacapa Topco Sàrl
Project Kino
companies
Tejo Energia
Produção e
Distribuição de
Energia Elétrica
Rocky Caney Holding
Drift Sand Wind
Project
Front Marítim del
Besòs
Enel Green Power
Bungala
Rusenergosbyt
Energie Electrique de
Tahaddart
Transmisora Eléctrica
de Quillota
PowerCrop
Centrales
Hidroeléctricas de
Aysén
Nuclenor
Associates
CESI
Tecnatom
Suministradora
Eléctrica de Cádiz
Compañía Eólica
Tierras Altas
Cogenio Srl
Other
Total
459
50.0%
394
147
50.0%
21.4%
79
20.0%
20.0%
50.0%
61.4%
50.0%
49.5%
32.0%
50.0%
50.0%
51.0%
50.0%
42.7%
45.0%
33.5%
37.5%
20.0%
43
36
37
40
35
27
12
-
-
-
57
29
10
11
8
106
2,099
(14)
(76)
(58)
(7)
(21)
4
3
-
3
44
2
1
(9)
-
-
7
1
4
-
1
-
-
(178)
-
(5)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6)
-
-
-
-
(41)
(3)
(5)
-
-
-
-
-
(3)
(2)
-
(15)
(75)
% held
at Dec. 31,
2019
504
137
384
130
50.0%
20.0%
50.0%
20.6%
60
20.0%
58
43.8%
20.0%
50.0%
61.4%
51.0%
49.5%
32.0%
50.0%
50.0%
51.0%
50.0%
42.7%
45.0%
33.5%
37.5%
20.0%
46
36
37
-
40
26
7
-
-
-
61
30
11
9
11
95
-
(84)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
21
16
48
(5)
2
(1)
(1)
(3)
-
(43)
2
-
(1)
9
-
-
(3)
-
-
-
2
4
(122)
(183)
(84)
47
1,682
Income effect includes the positive and negative income fig-
held in these companies by the Enel Group and mainly con-
ures recognized by the companies in proportion to the share
cerns the EGPNA (now Enel North America) repurchase of
242
Consolidated Annual Report 2019 13 companies that own seven operating renewable energy
Other changes mainly include the pro rata changes in the OCI
plants from the EGPNA REP joint venture.
reserves or other changes recognized directly in equity. In
particular, €21 million for Slovak Power Holding refers to OCI
The change in the scope of consolidation therefore mainly con-
changes on cash flow hedge derivatives, while €48 million
cerns this operation, as well as the subsequent sale by EGPNA
for OpEn Fiber is attributable to an increase in reserves for
(now named Enel North America) of 30% of its stake in the
future capital increases by shareholders (€66 million) and OCI
EGPNA REP joint venture, which owns a number of companies
reserves for cash flow hedge derivatives (-€18 million). The
developing wind power projects (the Athena operation, which
negative impact of €43 million recognized by the Enel Green
resulted in a capital loss of €25 million) and the reduction in
Power Bungala companies in Australia refers to the fair value
the share held in the special-purpose vehicle Zacapa Topco Sàrl,
remeasurement of the PPAs signed with customers.
which holds 100% of Ufinet International, a leading Latin Amer-
ican wholesale operator of fiber-optic networks.
The reclassification of €84 million to assets held for sale re-
fers to the share held by EGPNA REP Holding LLC in the com-
panies developing hydroelectric projects.
243
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following tables provide a summary of financial information for each joint arrangement and associate of the Group not
classified as held for sale in accordance with IFRS 5.
Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Shareholders’ equity
at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018
at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018
Joint arrangements
Slovak Power Holding
OpEn Fiber
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia Produção e
Distribuição de Energia Elétrica
Energie Electrique de Tahaddart
Associates
CESI
Tecnatom
Suministradora Eléctrica de Cádiz
Compañía Eólica Tierras Altas
10,182
3,070
1,376
3
146
77
198
62
19
4
9,295
2,084
1,343
3
203
91
75
51
6
6
702
421
99
144
132
20
13
64
66
23
922
313
81
116
163
11
68
67
70
27
10,884
3,491
1,475
147
278
97
211
126
85
27
10,217
2,397
1,424
119
366
102
143
118
76
33
6,385
1,894
753
-
25
6
21
35
33
2
5,643
1,043
669
-
72
8
13
29
26
3
755
828
73
131
85
8
-
24
20
2
981
565
65
112
126
9
55
24
21
2
7,140
2,722
826
131
110
14
21
59
53
4
6,624
1,608
734
112
198
17
68
53
47
5
3,744
3,593
769
649
16
168
83
190
67
32
23
789
690
7
168
85
75
65
29
28
244
Consolidated Annual Report 2019 Millions of euro
Non-current assets
Current assets
Total assets
Non-current liabilities
Current liabilities
Total liabilities
Shareholders’ equity
at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018
at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018
Joint arrangements
Slovak Power Holding
OpEn Fiber
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia Produção e
Distribuição de Energia Elétrica
Energie Electrique de Tahaddart
Associates
CESI
Tecnatom
Suministradora Eléctrica de Cádiz
Compañía Eólica Tierras Altas
10,182
3,070
1,376
3
146
77
198
62
19
4
9,295
2,084
1,343
3
203
91
75
51
6
6
702
421
99
144
132
20
13
64
66
23
922
313
81
116
163
11
68
67
70
27
10,884
3,491
1,475
147
278
97
211
126
85
27
10,217
2,397
1,424
119
366
102
143
118
76
33
6,385
1,894
753
-
25
6
21
35
33
2
5,643
1,043
669
-
72
8
13
29
26
3
755
828
73
131
85
8
-
24
20
2
981
565
65
112
126
9
55
24
21
2
7,140
2,722
826
131
110
14
21
59
53
4
6,624
1,608
734
112
198
17
68
53
47
5
3,744
3,593
769
649
16
168
83
190
67
32
23
789
690
7
168
85
75
65
29
28
245
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
Joint arrangements
Slovak Power Holding
OpEn Fiber
Zacapa Topco Sàrl
Rusenergosbyt
Tejo Energia Produção e Distribuição de
Energia Elétrica
Energie Electrique de Tahaddart
Associates
CESI
Tecnatom
Suministradora Eléctrica de Cádiz
Compañía Eólica Tierras Altas
24. Derivatives
Total revenue
at Dec. 31,
2019
at Dec. 31,
2018
Income before taxes
at Dec. 31,
2019
at Dec. 31,
2018
Net income from continuing
operations
at Dec. 31,
2019
at Dec. 31,
2018
2,600
2,587
186
208
114
91
2,548
2,378
145
37
111
104
18
12
234
35
114
97
10
12
172
(157)
(22)
111
21
9
9
2
11
2
205
(162)
(21)
88
30
7
11
-
6
4
131
(117)
(32)
89
14
6
6
2
11
1
103
(127)
(25)
70
21
5
7
-
6
3
Millions of euro
Non-current
Current
Derivative financial assets
Derivative financial liabilities
at Dec. 31, 2019 at Dec. 31, 2018
at Dec. 31, 2019 at Dec. 31, 2018
1,383
2,407
1,005
2,609
4,065
3,554
3,914
4,343
For more information on derivatives classified as non-current financial assets, please see note 46 for hedging derivatives and
trading derivatives.
25. Current/Non-current assets/(liabilities) deriving from contracts
with customers
Millions of euro
Non-current
Current
Assets deriving from contracts with customers
Liabilities deriving from contracts with customers
at Dec. 31, 2019 at Dec. 31, 2018
at Dec. 31, 2019 at Dec. 31, 2018
487
6,301
346
6,306
166
1,328
135
1,095
Non-current assets deriving from contracts with customers
Current assets deriving from contracts with customers main-
refer mainly to assets under development resulting from pub-
ly concern outstanding construction contracts (€140 million),
lic-to-private service concession arrangements recognized in
payments on which are subject to the fulfillment of a perfor-
accordance with IFRIC 12 and which have an expiration of be-
mance obligation.
yond 12 months (€479 million). These cases arise when the
contract holder has not yet obtained the full right to recognize
The figure at December 31, 2019 for non-current liabilities de-
the asset from the grantor at the hypothetical conclusion of the
riving from contracts with customers is mainly attributable to
concession arrangement in that there remains a contractual ob-
distribution in Italy (€3,520 million), Spain (€2,364 million), and
ligation to ensure that the asset becomes operational. It should
Romania (€411 million).
also be noted that the figure at December 31, 2019 includes
investments for the period in the amount of €692 million.
Current liabilities deriving from contracts with customers in-
246
Consolidated Annual Report 2019 clude the contractual liabilities related to revenue from con-
the amount of €793 million recognized in Italy and Spain, as
nections to the electricity grid expiring within 12 months in
well as liabilities for construction contracts (€504 million).
26. Other non-current financial assets - €6,006 million
Millions of euro
Equity investments in other companies measured at fair value
Receivables and securities included in net financial debt (see note 26.1)
Service concession arrangements
Non-current prepaid financial expense
Total
at Dec. 31, 2019 at Dec. 31, 2018
Change
72
3,185
2,702
47
6,006
63
3,272
2,415
19
5,769
9
(87)
287
28
237
14.3%
-2.7%
11.9%
-
4.1%
The change in other non-current financial assets particularly
arrangements, which have been recognized in accordance
reflects the higher value of service concession arrangements,
with IFRIC 12.
recognized above all in Brazil, which concern amounts paid to
the licensing authorities for the construction and/or improve-
The following is a breakdown of equity investments in other
ment of public service infrastructures involved in concession
companies measured at fair value:
Millions of euro
Galsi
Empresa Propietaria de la Red SA
European Energy Exchange
Athonet Srl
Korea Line Corporation
Hubject GmbH
Other
Total
at Dec. 31, 2019
% held at Dec. 31, 2018
% held
Change
17.6%
11.1%
2.2%
16.0%
0.3%
12.5%
14
17
8
7
2
10
14
72
17.6%
11.1%
2.2%
16.0%
0.3%
-
14
17
8
7
2
-
15
63
-
-
-
-
-
10
(1)
9
26.1 Other non-current financial assets included in net financial debt -
€3,185 million
Millions of euro
Securities at FVOCI
Other financial receivables
Total
at Dec. 31, 2019
at Dec. 31, 2018
Change
416
2,769
3,185
360
2,912
3,272
56
(143)
(87)
15.6%
-4.9%
-2.7%
Securities measured at FVOCI represent financial instruments
to reimbursement of the extraordinary costs incurred by
in which the Dutch insurance companies invest a portion of
distributors for the early replacement of electromechanical
their liquidity.
meters with electronic devices;
The reduction in other financial receivables is mainly attribut-
> €220 million for the decrease in the financial receivable
able to:
that was recognized in 2018 by Enel North America from
> €96 million for the reclassification of medium- and long-
EGPNA Preferred Wind Holdings. This loan was repaid with
term financial receivables to short-term financial receiva-
the reacquisition of EGPNA REP;
bles and securities of the receivable of e-distribuzione from
> an increase of €106 million in Enel Finance International’s
CSEA (€55 million) and the receivable (€41 million) related
receivable from Slovak Power Holding.
247
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 27. Other non-current assets - €2,701 million
Millions of euro
Receivables from institutional market operators
Other receivables
Total
at Dec. 31, 2019 at Dec. 31, 2018
Change
232
2,469
2,701
200
1,072
1,272
32
1,397
1,429
16.0%
-
-
Receivables from institutional market operators are essential-
similar to VAT and is applied on the sale of goods, telecommu-
ly unchanged from the previous year.
nications and transport.
Electricity distribution companies in Brazil have filed separa-
At December 31, 2019, other receivables mainly regarded tax
te law suits against the Brazilian government’s application of
receivables in the amount of €1,587 million (€231 million at
PIS/COFINS for the portion calculated on the ICMS tax.
December 31, 2018), security deposits in the amount of €418
These companies include Enel Distribuição São Paulo, Enel
million (€307 million at the end of 2018), and non-monetary
Distribuição Ceará, Enel Distribuição Goiás, and Enel Distri-
grants to be received in respect of green certificates totaling
buição Rio.
€37 million (€50 million at December 31, 2018).
The Brazilian court has upheld the complaint filed by the com-
The change for the year mainly reflects the tax receivables re-
panies, according to which the additional ICMS tax must not
cognized by Enel Distribuição São Paulo and Enel Distribuição
be included in the tax base for PIS and COFINS. The federal
Ceará related to the PIS/COFINS dispute in Brazil.
government has filed an appeal of this ruling.
The PIS (Program of Social Integration) and COFINS (Contri-
In 2019, Enel Distribuição São Paulo and Enel Distribuição
bution for the Financing of Social Security) are federal contri-
Ceará were notified of the ruling that acknowledges the full
butions that pay companies in Brazil with the goal of funding
deductibility of ICMS for the purposes of calculating PIS and
programs for employees, public health, social services, and
COFINS for the periods between December 2013 and De-
social security by applying tax rates on the gross revenue of
cember 2014 for Enel Distribuição São Paulo and from May
each company. The ICMS (Tax on Commerce and Services) is
2001 onward for Enel Distribuição Ceará.
248
Consolidated Annual Report 2019 28. Inventories - €2,531 million
Millions of euro
Raw materials, consumables and supplies:
- fuels
- materials, equipment and other inventories
Total
Environmental certificates:
- CO2 emissions allowances
- green certificates
- white certificates
Total
Buildings held for sale
Payments on account
TOTAL
at Dec. 31,
2019
at Dec. 31,
2018
Change
857
1,493
2,350
96
12
1
109
54
18
1,260
1,345
2,605
119
16
-
135
57
21
(403)
148
(255)
(23)
(4)
1
(26)
(3)
(3)
2,531
2,818
(287)
-32.0%
11.0%
-9.8%
-19.3%
-25.0%
-
-19.3%
-5.3%
-14.3%
-10.2%
Raw materials, consumables and supplies consist of materi-
The overall decrease in inventories for the year (€287 million)
als and equipment used to operate, maintain, and construct
is mainly attributable to the impairment of inventories of fuel,
power plants and distribution networks, as well as fuel inven-
materials and spare-parts (€308 million) associated with the
tories to cover the company’s requirements for generation
coal-fired plants subject to impairment in Italy and Spain.
and trading activities.
29. Trade receivables - €13,083 million
Millions of euro
Customers:
- electricity sales and transport
- distribution and sale of gas
- other assets
Total customer receivables
Trade receivables due from associates and joint arrangements
TOTAL
at Dec. 31, 2019
at Dec. 31, 2018
Change
8,532
1,284
3,014
12,830
253
13,083
8,556
1,145
3,687
13,388
199
13,587
(24)
139
(673)
(558)
54
(504)
-0.3%
12.1%
-18.3%
-4.2%
27.1%
-3.7%
Trade receivables from customers are recognized net of al-
the sale and transport of electricity, to an increase in write-
lowances for doubtful accounts, which totaled €2,980 million
downs and to ordinary developments in receivables.
at the end of the year, compare with a balance of €2,828 mil-
For more information on trade receivables, see note 43 “Fi-
lion at the end of the previous year. Specifically, the reduction
nancial instruments”.
for the period was mainly due to a decline in receivables for
249
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 30. Other current financial assets - €4,305 million
Millions of euro
Current financial assets included in net financial debt (see note 30.1)
Other
Total
at Dec. 31, 2019 at Dec. 31, 2018
Change
4,158
147
4,305
5,003
157
5,160
(845)
(10)
(855)
-16.9%
-6.4%
-16.6%
30.1 Other current financial assets included in net financial debt - €4,158 million
Millions of euro
Short-term portion of long-term financial receivables
Securities at FVOCI
Financial receivables and cash collateral
Other
Total
at Dec. 31, 2019 at Dec. 31, 2018
Change
1,585
61
2,153
359
4,158
1,522
72
2,559
850
5,003
63
(11)
(406)
(491)
(845)
4.1%
-15.3%
-15.9%
-57.8%
-16.9%
The change in this item is mainly due to the following:
> a decrease in “Other” due primarily to the payment of the
> a reduction of €406 million in financial receivables and cash
financial receivable recognized by Enel Finance Interna-
collateral due to the decline in cash collateral paid to coun-
tional in 2018 in respect of the renewables companies of
terparties for transactions in over-the-counter derivative on
Mexico, which are accounted for using the equity method.
interest rates and exchange rates;
31. Other current assets - €3,115 million
Millions of euro
Receivables from institutional market operators
Advances to suppliers
Receivables due from employees
Other receivables
Sundry tax receivables
Accrued operating income and prepaid expenses
Total
at Dec. 31, 2019 at Dec. 31, 2018
Change
732
314
28
1,084
797
160
3,115
745
299
30
1,139
622
148
2,983
(13)
15
(2)
(55)
175
12
132
-1.7%
5.0%
-6.7%
-4.8%
28.1%
8.1%
4.4%
Receivables from institutional market operators include re-
Other receivables decreased mainly due to the collection of
ceivables in respect of the Italian system in the amount of
the receivable deriving from the sale of the eight renewable
€450 million (€526 million at December 31, 2018) and the
companies in Mexico last year. This effect is partially offset by
Spanish system in the amount of €254 million (€185 million at
the recognition of contingent assets following the sale of a
December 31, 2018).
number of companies in North America.
The increase of €175 million in sundry tax receivables is main-
ly attributable to a reclassification of tax receivables of Enel
Distribuição São Paulo to short term.
250
Consolidated Annual Report 2019 32. Cash and cash equivalents - €9,029 million
Cash and cash equivalents, detailed in the table below, are
essentially in respect of deposits pledged to secure tran-
not restricted by any encumbrances, apart from €72 million
sactions carried out.
Millions of euro
Bank and postal deposits
Cash and cash equivalents on hand
Other investments of liquidity
Total
at Dec. 31, 2019
at Dec. 31, 2018
Change
7,910
87
1,032
9,029
5,531
328
771
6,630
2,379
(241)
261
2,399
43.0%
-73.5%
33.9%
36.2%
33. Assets and disposal groups classified as held for sale - €101 million
and €3 million
Changes in assets held for sale during 2019 can be broken down as follows.
Millions of euro
Property, plant and equipment
Intangible assets
Goodwill
Investments accounted for using the equity
method
Other non-current assets
Cash and cash equivalents
Inventories, trade receivables, and other current
assets
Total
Changes in liabilities in 2019 were as follows:
Millions of euro
Long-term borrowings
Provisions for risks and charges (non-current portion)
Other non-current liabilities
Short-term borrowings
Other current financial liabilities
Trade payables and other current liabilities
Total
Reclassification
from/to current
and non-current
assets
Disposals and
changes in
the scope of
consolidation
at Dec. 31,
2018
Impairment
losses
Other
changes
at Dec. 31,
2019
611
5
23
-
1
21
27
688
413
13
-
80
-
-
-
(879)
(7)
(23)
-
(1)
(33)
(22)
(124)
(6)
-
-
-
-
-
506
(965)
(130)
(7)
2
-
-
-
12
(5)
2
14
7
-
80
-
-
-
101
Disposals and
changes in
the scope of
consolidation
at Dec. 31, 2018
Other changes
at Dec. 31, 2019
99
1
5
284
2
16
407
(100)
(2)
(2)
-
(1)
(11)
(116)
1
1
-
(284)
(1)
(5)
(288)
-
-
3
-
-
-
3
Assets and liabilities held for sale at December 31, 2019, the-
mainly regard the value of a number of hydro shareholdin-
refore amount to €101 million and €3 million respectively and
gs measured using the equity method and held by EGPNA
251
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements (now Enel North America) and the Rionegro plant in Colom-
sue, among other things, the purposes of the 2019 LTI Plan.
bia, which, following decisions by management, meet the re-
On 19 September the Company’s Board of Directors, in im-
quirements of IFRS 5 for classification within this aggregate.
plementation of the authorization granted and in compliance
The change for the period essentially concerns the sale of a
with the related terms already announced to the market, ap-
number of renewable energy companies in Brazil that were
proved the start of a treasury share purchase program, for a
previously classified as held for sale and the Reftinskaya
maximum amount of €10.5 million and for a number of shares
GRES plant, which was classified in this aggregate in 2019
not exceeding 2.5 million (the “Program”), equal to about
and sold in the 4th Quarter of 2019.
0.02% of Enel’s share capital.
Over the duration of the Program (September 23, 2019 - De-
cember 2, 2019) the Company purchased 1,549,152 Enel
shares at the weighted average price of €6.7779 per share.
Other reserves - €1,139 million
Share premium reserve - €7,487 million
Pursuant to Article 2431 of the Italian Civil Code, the share
premium reserve contains, in the case of the issue of shares
at a price above par, the difference between the issue price
of the shares and their par value, including those resulting
from conversion from bonds. The reserve, which is a capital
reserve, may not be distributed until the legal reserve has
reached the threshold established under Article 2430 of the
Italian Civil Code.
Legal reserve - €2,034 million
The legal reserve is formed of the part of net income that,
pursuant to Article 2430 of the Italian Civil Code, cannot be
distributed as dividends.
Other reserves - €2,262 million
These include €2,215 million related to the remaining portion
of the value adjustments carried out when Enel was trans-
formed from a public entity to a joint-stock company.
Pursuant to Article 47 of the Uniform Income Tax Code (Testo
Unico Imposte sul Reddito, or “TUIR”), this amount does not
constitute taxable income when distributed.
Reserve from translation of financial statements in cur-
rencies other than euro - €(3,802) million
The decrease for the year, of €485 million, was mainly due to
the net strengthening of the functional currency against the
foreign currencies used by subsidiaries and the change in the
scope of consolidation connected with the purchase of 5.74%
of Enel Américas.
34. Shareholders’ equity -
€46,938 million
34.1 Equity attributable to the
shareholders of the Parent Company -
€30,377 million
Share capital - €10,167 million
At December 31, 2019, the fully subscribed and paid-up share
capital of Enel SpA totaled €10,166,679,946, represented by
the same number of ordinary shares with a par value of €1.00
each. Share capital is unchanged compared with that regis-
tered at December 31, 2018.
At December 31, 2019, based on the shareholders register
and the notices submitted to CONSOB and received by the
Company pursuant to Article 120 of Legislative Decree 58
of February 24, 1998, as well as other available information,
shareholders with an interest of greater than 3% in the Com-
pany’s share capital included the Ministry for the Economy
and Finance (with a 23.585% stake) and Capital Research
and Management Company (which held a direct interest of
5.029% at October 11, 2019 for asset management purpos-
es).
Treasury share reserve - €(1) million
As at December 31, 2019, treasury shares are represented
by 1,549,152 ordinary shares of Enel SpA with a par value of
€1.00 each, purchased through a qualified intermediary for a
total value of €10 million.
On May 16, 2019, the Shareholders’ Meeting approved the
long-term incentive plan for 2019 (“2019 LTI Plan” or “Plan”)
intended for the management of Enel SpA and/or its subsid-
iaries pursuant to Article 2359 of the Civil Code, granting the
Board of Directors all the powers necessary to implement the
Plan.
On the same date, the Shareholders’ Meeting also authorized
the Board of Directors to purchase treasury shares, in compli-
ance with the time limits established by the resolution, to pur-
252
Consolidated Annual Report 2019 Reserve from measurement of cash flow hedge financial
> the effects of the merger into Enel Américas of Endesa
instruments - €(1,610) million
Américas and Chilectra Américas;
This includes the net charges recognized in equity from the
> the disposal to third parties of a minority interest without
measurement of cash flow hedge derivatives. The cumulative
loss of control in Enel Green Power North America Renew-
tax effect is equal to €431 million.
able Energy Partners and a number of companies in South
Africa.
Reserve from measurement of costs of hedging financial
The reserve did not change in 2019.
instruments - €(147) million
As of January 1, 2018, in application of IFRS 9, these reserves
Reserve from acquisitions of non-controlling interests -
include the change in fair value of currency basis points and
€(1,572) million
forward points. The cumulative tax effect is equal to €6 mil-
This reserve mainly includes the surplus of acquisition prices
lion.
with respect to the carrying value of the equity acquired fol-
lowing the acquisition from third parties of further interests
Reserve from measurement of financial instruments at
in companies already controlled in Latin America and in Italy
FVOCI - €21 million
(Enel Green Power SpA).
This includes net unrealized income from the measurement
The change for the period mainly reflects the effects of:
at fair value of financial assets.
> the increase of 5.74% in the interest held in Enel Améri-
The cumulative tax effect is equal to a negative €3 million.
cas under the provisions of the share swap contracts en-
tered into with a financial institution, raising that stake to
Reserve from equity investments accounted for using the
59.97%;
equity method - €(119) million
> the increase of 4.1% in the interest held in Eletropaulo
The reserve reports the share of comprehensive income to
Metropolitana Eletricidade de São Paulo SA;
be recognized directly in equity of companies accounted for
> the increase of 0.11% in the interest held in Enel Chile
using the equity method. The cumulative tax effect is equal
under the provisions of the share swap contracts entered
to €25 million.
into with a financial institution;
> the increase of 23.44% in the interest held in Enel Green
Reserve from remeasurement of net liabilities/(assets) of
Power India, raising that stake to 100%.
defined benefit plans - €(1,043) million
This reserve includes all actuarial gains and losses, net of tax
effects. The change is mainly attributable to the decrease in
net actuarial losses recognized during the period, mainly re-
flecting changes in the discount rate. The cumulative tax ef-
Retained earnings and loss carried forward - €19,081
million
This reserve reports earnings from previous years that have
fect is equal to €244 million.
not been distributed or allocated to other reserves.
Reserve from disposal of equity interests without loss of
control - €(2,381) million
This item mainly reports:
> the gain posted on the public offering of Enel Green Power
shares, net of expenses associated with the disposal and
the related taxation;
> the sale of minority interests recognized as a result of the
Enersis (now Enel Américas and Enel Chile) capital increase;
> the capital loss, net of expenses associated with the dis-
posal and the related taxation, from the public offering of
21.92% of Endesa;
> the income from the disposal of the minority interest in
Enel Green Power North America Renewable Energy Part-
ners;
253
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The table below shows the changes in gains and losses recognized directly in other comprehensive income, including non-con-
trolling interests, with specific reporting of the related tax effects.
Millions of euro
Reserve from translation
of financial statements in
currencies other than euro
Reserve from measurement
of cash flow hedge financial
instruments
Reserves from measurement
of costs of hedging financial
instruments
Reserve from measurement of
financial instruments at FVOCI
Share of OCI of associates
accounted for using the equity
method
Reserves from measurement
of equity investments in other
companies
Remeasurements of net
liabilities/(assets) of defined
benfit plans
Total gains/(losses) recognized
in equity
34.2 Dividends
Dividends paid in 2018
Dividends for 2017
Interim dividends for 2018 (1)
Special dividends
Total dividend paid in 2018
Dividends paid in 2019
Dividends for 2018
Interim dividends for 2019 (2)
Special dividends
Total dividend paid in 2019
at Dec. 31, 2018
Of which
shareholders
of the Parent
Company
Total
Of which
non-controlling
interests
Gains/(Losses)
recognized in
equity for the
year
Released
to income
statement
(6,709)
(3,206)
(3,503)
(481)
-
(2,007)
(1,721)
(286)
(2,036)
2,141
(265)
(4)
(109)
(258)
(3)
(112)
(11)
(11)
(7)
(1)
3
-
150
7
(60)
-
(973)
(727)
(246)
(702)
(36)
-
-
-
-
(10,078)
(6,038)
(4,040)
(3,122)
2,105
Taxes
-
(66)
6
(2)
3
-
200
141
Change
Of which
shareholders
of the Parent
Company
(265)
Of which
non-controlling
interests
at Dec. 31, 2019
Of which
shareholders
of the Parent
Company
Of which
non-controlling
interests
(3,471)
(3,719)
(1,968)
(1,627)
(341)
Total
(481)
39
120
(57)
5
-
(502)
(876)
94
111
(56)
5
-
(318)
(429)
(216)
(55)
9
-
-
(1)
(184)
(447)
Total
(7,190)
(145)
1
(166)
(11)
(1,475)
(10,954)
(147)
2
(168)
(11)
(1,045)
(6.467)
(1)
2
2
-
(430)
(4.487)
Amount distributed
(millions of euro)
Dividend per share
(euro)
2,410
-
-
2,410
2,847
-
-
2,847
0.24
-
-
0.24
0.28
-
-
0.28
(1) Approved by the Board of Directors on November 6, 2018, and paid as from January 23, 2019 (interim dividend of €0.14 per share for a total of €1,423 million).
(2) Approved by the Board of Directors on November 12, 2019, and paid as from January 22, 2020 (interim dividend of €0.16 per share for a total of €1,627 million).
The dividend for 2019, equal to €0.328 per share, for a to-
ments do not take account of the effects of the distribution to
tal amount of €3,334 million (of which €0.16 per share, for a
shareholders of the dividend for 2019, except for the liability
total of €1,626 million, already paid as an interim dividend),
in respect of shareholders for the interim dividend for 2019
has been proposed to and resolved by the Shareholders’
dividend, which was approved by the Board of Directors on
Meeting of May 14, 2020 at single call. These financial state-
November 12, 2019 for a potential maximum of €1,627 mil-
254
Consolidated Annual Report 2019 The table below shows the changes in gains and losses recognized directly in other comprehensive income, including non-con-
trolling interests, with specific reporting of the related tax effects.
Millions of euro
Reserve from translation
of financial statements in
currencies other than euro
Reserve from measurement
of cash flow hedge financial
instruments
Reserves from measurement
of costs of hedging financial
instruments
Reserve from measurement of
financial instruments at FVOCI
Share of OCI of associates
accounted for using the equity
method
Reserves from measurement
of equity investments in other
companies
Remeasurements of net
liabilities/(assets) of defined
benfit plans
in equity
Total gains/(losses) recognized
34.2 Dividends
Dividends paid in 2018
Dividends for 2017
Interim dividends for 2018 (1)
Special dividends
Total dividend paid in 2018
Dividends paid in 2019
Dividends for 2018
Interim dividends for 2019 (2)
Special dividends
Total dividend paid in 2019
at Dec. 31, 2018
Of which
shareholders
of the Parent
non-controlling
Total
Company
interests
(6,709)
(3,206)
(3,503)
Of which
Gains/(Losses)
recognized in
equity for the
Released
to income
statement
Taxes
(2,007)
(1,721)
(286)
(2,036)
2,141
(66)
150
(36)
(265)
(4)
(109)
(258)
(3)
(112)
(11)
(11)
(7)
(1)
3
-
-
-
-
-
-
(973)
(727)
(246)
(702)
(10,078)
(6,038)
(4,040)
(3,122)
2,105
Change
Of which
shareholders
of the Parent
Company
(265)
94
111
5
(56)
-
(318)
(429)
Of which
non-controlling
interests
(216)
(55)
9
-
(1)
-
(184)
(447)
Total
(481)
39
120
5
(57)
-
(502)
(876)
at Dec. 31, 2019
Of which
shareholders
of the Parent
Company
Of which
non-controlling
interests
(3,471)
(3,719)
Total
(7,190)
(1,968)
(1,627)
(341)
(145)
1
(166)
(11)
(1,475)
(10,954)
(147)
2
(168)
(11)
(1,045)
(6.467)
2
(1)
2
-
(430)
(4.487)
Amount distributed
(millions of euro)
Dividend per share
lion, and paid as from January 22, 2020 net of the portion
In particular, the Group seeks to maintain an adequate cap-
pertaining to the 1,549,152 million treasury shares held as at
italization that enables it to achieve a satisfactory return for
the record date of January 21, 2020.
shareholders and ensure access to external sources of financ-
Capital management
The Group’s objectives for managing capital comprise safe-
In this context, the Group manages its capital structure and
adjusts that structure when changes in economic conditions
guarding the business as a going concern, creating value for
so require. There were no substantive changes in objectives,
stakeholders and supporting the development of the Group.
policies or processes in 2019.
ing, in part by maintaining an adequate rating.
year
(481)
(60)
7
-
2,410
-
-
-
-
2,410
2,847
2,847
-
6
3
-
(2)
200
141
(euro)
0.24
-
-
-
-
0.24
0.28
0.28
(1) Approved by the Board of Directors on November 6, 2018, and paid as from January 23, 2019 (interim dividend of €0.14 per share for a total of €1,423 million).
(2) Approved by the Board of Directors on November 12, 2019, and paid as from January 22, 2020 (interim dividend of €0.16 per share for a total of €1,627 million).
255
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements To this end, the Group constantly monitors developments in
cember 31, 2019 and 2018, is summarized in the following
the level of its debt in relation to equity. The situation at De-
table.
Millions of euro
Non-current financial position
Net current financial position
Non-current financial receivables and long-term securities
Net financial debt
Equity attributable to the shareholders of the Parent Company
Non-controlling interests
Shareholders’ equity
Debt/equity ratio
at Dec. 31, 2019
at Dec. 31, 2018
54,174
(5,815)
(3,184)
45,175
30,377
16,561
46,938
0.96
48,983
(4,622)
(3,272)
41,089
31,720
16,132
47,852
0.86
Change
5,191
(1,193)
88
4,086
(1,343)
429
(914)
-
The percentage increase in the use of debt is attributable to
and the acquisition of control of a number of companies from
the increase in net financial debt, mainly reflecting the fun-
the EGPNA REP joint venture.
ding requirements of investment in the period, the recogni-
tion of a liability following the first-time application of IFRS 16
See note 41 for a breakdown of the individual items in the table.
34.3 Non-controlling interests - €16,561 million
The following table reports the composition of non-controlling interests by geographic area.
Millions of euro
Italy
Iberia
Latin America
Europe and Euro-Mediterranean Affairs
North America
Africa, Asia and Oceania
Total
Non-controlling interests
Net income attributable to
non-controlling interests
at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018
1
5,961
9,277
903
222
197
7
6,405
8,406
908
181
225
(2)
36
1,256
6
(1)
7
-
386
1,095
68
4
8
16,561
16,132
1,302
1,561
Finally, note that with effect from September 2019, Latin
In order to ensure full comparability of the figures in the li-
America also includes the countries Panama, Costa Rica,
ght of the new organization, the comparative figures for 2018
Guatemala, El Salvador and Nicaragua, which were previously
have been restated appropriately.
reported under the geographic area North and Central Ameri-
ca (now renamed North America).
35. Borrowings
Millions of euro
Long-term borrowings
Short-term borrowings
Total
Non-current
Current
at Dec. 31, 2019
at Dec. 31, 2018
at Dec. 31, 2019 at Dec. 31, 2018
54,174
-
54,174
48,983
-
48,983
3,409
3,917
7,326
3,367
3,616
6,983
For more information on the nature of borrowings, see note 43 “Financial instruments”.
256
Consolidated Annual Report 2019 36. Employee benefits - €3,771 million
The Group provides its employees with a variety of benefits,
fit plans and benefits are fully ensured, with the exception
including deferred compensation benefits, additional months’
of the former plan for benefits in the event of the death of
pay for having reached age limits or eligibility for old-age pen-
a retired employee. Finally, the Brazilian companies have
sion, loyalty bonuses for achievement of seniority milestones,
also established defined benefit plans;
supplemental retirement and healthcare plans, residential
> the item “electricity discount” comprises benefits regar-
electricity discounts and similar benefits. More specifically:
ding electricity supply associated with foreign companies.
> for Italy, the item “pension benefits” regards estimated
For Italy, that benefit, which was granted until the end of
accruals made to cover benefits due under the supple-
2015 to retired employees only, was unilaterally cancelled;
mental retirement schemes of retired executives and the
> the item “health insurance” reports benefits for current or
benefits due to personnel under law or contract at the time
retired employees covering medical expenses;
the employment relationship is terminated. For the forei-
> “other benefits” mainly regard the loyalty bonus, which is
gn companies, the item reports post-employment benefi-
adopted in various countries and for Italy is represented by
ts, of which the most material regard the pension benefit
the estimated liability for the benefit entitling employees
schemes of Endesa in Spain, which break down into three
covered by the electricity workers national collective bar-
types that differ on the basis of employee seniority and
gaining agreement to a bonus for achievement of seniority
company. In general, under the framework agreement of
milestones (25th and 35th year of service). It also includes
October 25, 2000, employees participate in a specific defi-
other incentive plans, which provide for the award to cer-
ned-contribution pension plan and, in cases of disability or
tain Company managers of a monetary bonus subject to
death of employees in service, a defined benefit plan whi-
specified conditions.
ch is covered by appropriate insurance policies. In addition,
the group has two other limited-enrollment plans (i) for cur-
The following table reports changes in the defined benefit
rent and retired Endesa employees covered by the electri-
obligation for post-employment and other long-term em-
city industry collective bargaining agreement prior to the
ployee benefits at December 31, 2019, and December 31,
changes introduced with the framework agreement noted
2018, respectively, as well as a reconciliation of that obligation
earlier and (ii) for employees of the former Catalan compa-
with the actuarial liability.
nies (Fecsa/Enher/HidroEmpordà). Both are defined bene-
257
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
2019
2018
Pension benefits
Electricity
discount
Health insurance
Other benefits
Total
Pension benefits
Electricity discount
Health insurance
Other benefits
CHANGES IN ACTUARIAL OBLIGATION
Actuarial obligation at the start of the year
5,072
Current service cost
Interest expense
Actuarial (gains)/losses arising from changes in
demographic assumptions
Actuarial (gains)/losses arising from changes in
financial assumptions
Experience adjustments
Past service cost
(Gains)/Losses arising from settlements
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other changes
Liabilities classified as held for sale
Actuarial obligation at year end (A)
CHANGES IN PLAN ASSETS
Fair value of plan assets at the start of the
year
Interest income
Expected return on plan assets excluding
amounts included in interest income
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other payments
Changes in the scope of consolidation
Fair value of plan assets at year-end (B)
EFFECT OF ASSET CEILING
Asset ceiling at the start of the year
Interest income
Changes in asset ceiling
Exchange differences
Changes in the scope of consolidation
Asset ceiling at year end (C)
20
335
(16)
701
94
(8)
-
(84)
-
2
(431)
6
-
5,691
3,160
235
272
(50)
186
2
(431)
-
-
3,374
24
2
20
(1)
-
45
767
4
15
-
91
55
-
-
-
-
-
(31)
3
-
904
-
-
-
-
31
-
(31)
-
-
-
-
-
-
-
-
-
253
4
10
1
15
(4)
-
-
(2)
-
-
(14)
-
-
263
-
-
-
-
14
-
(14)
-
-
-
-
-
-
-
-
-
231
32
5
-
8
13
2
-
1
-
-
(45)
(5)
-
242
-
-
-
-
16
-
(16)
-
-
-
-
-
-
-
-
-
6,323
60
365
(15)
815
158
(6)
-
(85)
-
2
(521)
4
-
7,100
3,160
235
272
(50)
247
2
(492)
-
-
3,374
24
2
20
(1)
-
45
Net liability in balance sheet (A-B+C)
2,362
904
263
242
3,771
767
253
231
258
2
-
-
-
2,413
16
247
(2)
213
21
(1)
(114)
(370)
2,647
5,072
1,317
173
70
(82)
171
(370)
2
-
1,879
3,160
(38)
64
4
(6)
-
24
1,936
739
4
14
(10)
48
(1)
(30)
3
-
767
30
(30)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
253
5
10
-
4
2
(9)
(12)
253
12
--
(12)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
254
36
(5)
5
-
7
7
-
(6)
(65)
(2)
231
24
(24)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
3,659
61
276
(2)
202
78
6
-
-
2
-
(130)
(477)
2,648
6,323
1,317
173
70
(82)
237
(436)
2
-
1,879
3,160
64
4
(38)
(6)
-
24
3,187
Consolidated Annual Report 2019 Millions of euro
2018
Pension benefits
Health insurance
Other benefits
Total
Pension benefits
Electricity discount
Health insurance
Other benefits
2,413
16
247
(2)
213
21
(1)
-
(114)
-
2
(370)
2,647
-
5,072
1,317
173
70
(82)
171
2
(370)
-
1,879
3,160
64
4
(38)
(6)
-
24
1,936
739
4
14
-
(10)
48
-
-
(1)
-
-
(30)
3
-
767
-
-
-
-
30
-
(30)
-
-
-
-
-
-
-
-
-
253
5
10
-
4
2
-
-
(9)
-
-
(12)
-
-
253
-
-
-
-
12
--
(12)
-
-
-
-
-
-
-
-
254
36
5
-
(5)
7
7
-
(6)
-
-
(65)
(2)
-
231
-
-
-
-
24
-
(24)
-
-
-
-
-
-
-
-
-
767
253
231
CHANGES IN ACTUARIAL OBLIGATION
Actuarial obligation at the start of the year
5,072
2019
Electricity
discount
Current service cost
Interest expense
Actuarial (gains)/losses arising from changes in
demographic assumptions
Actuarial (gains)/losses arising from changes in
(Gains)/Losses arising from settlements
financial assumptions
Experience adjustments
Past service cost
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other changes
Liabilities classified as held for sale
Actuarial obligation at year end (A)
CHANGES IN PLAN ASSETS
Fair value of plan assets at the start of the
year
Interest income
Expected return on plan assets excluding
amounts included in interest income
Exchange differences
Employer contributions
Employee contributions
Benefits paid
Other payments
EFFECT OF ASSET CEILING
Asset ceiling at the start of the year
Interest income
Changes in asset ceiling
Exchange differences
Changes in the scope of consolidation
Asset ceiling at year end (C)
20
335
(16)
701
94
(8)
(84)
-
-
2
6
-
2
-
-
(431)
5,691
3,160
235
272
(50)
186
(431)
24
2
20
(1)
-
45
Changes in the scope of consolidation
Fair value of plan assets at year-end (B)
3,374
767
4
15
91
55
(31)
3
-
904
31
(31)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
253
4
10
1
15
(4)
(2)
(14)
263
14
(14)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
231
32
13
5
-
8
2
-
1
-
-
(45)
(5)
242
16
(16)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6,323
60
365
(15)
815
158
(6)
(85)
-
-
2
4
-
2
-
-
(521)
7,100
3,160
235
272
(50)
247
(492)
3,374
24
2
20
(1)
-
45
Net liability in balance sheet (A-B+C)
2,362
904
263
242
3,771
Total
3,659
61
276
(2)
202
78
6
-
(130)
-
2
(477)
2,648
-
6,323
1,317
173
70
(82)
237
2
(436)
-
1,879
3,160
64
4
(38)
(6)
-
24
3,187
259
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
(Gains)/Losses charged to profit or loss
Service cost and past service cost
Net interest expense
(Gains)/Losses arising from settlements
Actuarial (gains)/losses on other long-term benefits
Other changes
Total
Millions of euro
Change in (gains)/losses in OCI
Expected return on plan assets excluding amounts included in interest
income
Actuarial (gains)/losses on defined benefit plans
Changes in asset ceiling excluding amounts included in interest income
Other changes
Total
2019
32
129
-
25
-
186
2019
(272)
958
20
(4)
702
2018
39
107
-
28
(4)
170
2018
(70)
282
(38)
(2)
172
The change in cost recognized through profit or loss was
The liability recognized in the balance sheet at the end of the
equal to €16 million. The impact on the income statement is,
year is reported net of the fair value of plan assets, amounting
therefore, greater than in 2018, due mainly to the effect of
to €3,374 million at December 31, 2019. Those assets, which
interest on pension funds for Enel Distribuição São Paulo in
are entirely in Spain and Brazil, break down as follows.
2019
8%
68%
3%
-
-
21%
100%
2018
8%
65%
4%
-
-
23%
100%
Brazil.
Investments quoted in active markets
Equity instruments
Fixed-income securities
Investment property
Other
Unquoted investments
Assets held by insurance undertakings
Other
Total
260
Consolidated Annual Report 2019 The main actuarial assumptions used to calculate the liabi-
which are consistent with those used the previous year, are
lities in respect of employee benefits and the plan assets,
set out in the following table.
Italy
Iberia
Latin America
Other
countries
Italy
Iberia
Latin America
Other
countries
2019
2018
Discount rate
0.00%-0.70% 0.00%-1.14% 3.40%-7.59% 1.20%-6.45% 0.25%-1.50% 0.21%-1.75% 4.70%-9.15% 1.50%-8.77%
Inflation rate
0.70%
2.00% 3.00%-8.00% 1.00%-3.94%
1.50%
2.00% 3.00%-4.00% 1.50%-4.14%
Rate of wage
increases
Rate of increase in
healthcare costs
Expected rate of
return on plan assets
0.70%-1.70%
2.00% 3.80%-8.00% 2.50%-3.94%
0.025 %
2.00% 3.80%-5.00% 3.00%-4.20%
1.70%
3.20% 7.12%-8.00%
-
1.09% 6.44%-7.38%
-
-
2.50%
3.20% 7.12%-8.00%
-
1.75% 8.63%-9.04%
-
-
The following table reports the outcome of a sensitivity analy-
gation of changes reasonably possible at the end of the year
sis that demonstrates the effects on the defined benefit obli-
in the actuarial assumptions used in estimating the obligation.
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
Pension
benefits
Electricity
discount
Health
insurance
Other
benefits
at Dec. 31, 2019
at Dec. 31, 2018
321
(285)
(2)
31
19
9
-
179
78
(73)
(74)
79
2
(2)
-
36
15
(19)
(5)
10
(2)
(3)
12
19
5
(7)
(3)
1
5
(1)
-
(1)
280
(243)
(5)
32
10
11
-
155
63
(59)
(59)
61
(2)
(2)
-
25
9
(12)
(3)
3
(3)
(3)
32
8
3
(9)
(6)
2
1
(3)
-
(3)
Millions of euro
Decrease of 0.5% in
discount rate
Increase of 0.5% in
discount rate
Increase of 0.5% in
inflation rate
Decrease of 0.5% in
inflation rate
Increase of 0.5% in
remuneration
Increase of 0.5% in
pensions currently
being paid
Increase of 1%
healthcare costs
Increase of 1 year
in life expectancy
of active and retired
employees
The sensitivity analysis used an approach that extrapolates
The contributions expected to be paid into defined benefit
the effect on the defined benefit obligation of reasonable
plans in the subsequent year amount to €177 million.
changes in an individual actuarial assumption, leaving the
other assumptions unchanged.
The following table reports expected benefit payments in the
coming years for defined benefit plans.
Millions of euro
Within 1 year
In 1-2 years
In 2-5 years
More than 5 years
at Dec. 31, 2019
at Dec. 31, 2018
461
447
1,288
2,040
436
429
1,273
2,017
261
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 37. Provisions for risks and charges - €6,520 million
Millions of euro
Provision for litigation, risks and other charges:
- nuclear decommissioning
- retirement, removal and site restoration
- litigation
- environmental certificates
- taxes and duties
- other
Total
Provision for early retirement incentives
TOTAL
Millions of euro
Accrual Reversal Utilization
at Dec.
31, 2018
Provision for
litigation, risks
and other
charges:
- nuclear
decommissioning
- retirement,
removal and site
restoration
552
-
-
-
1,057
64
(21)
(41)
- litigation
1,506
278
(168)
(582)
- environmental
certificates
- taxes and duties
- other
Total
Provision for
early retirement
incentives
27
432
1,345
4,919
36
31
302
711
(18)
(20)
(90)
(13)
(109)
(295)
(317)
(1,040)
1,574
79
(13)
(437)
at Dec. 31, 2019
at Dec. 31, 2018
Non-current
Current
Non-current
Current
640
1,840
938
-
312
762
4,492
832
5,324
-
102
132
33
24
504
795
401
1,196
552
986
1,315
-
409
742
4,004
1,177
5,181
-
71
191
27
23
603
915
397
1,312
Provisions
for
retirement
and site
restoration
Unwinding
of interest
Change in
the scope of
consolidation
Translation
adjustment
Other
changes
Reclassifications
of liabilities held
for sale
at Dec.
31,
2019
-
-
-
-
-
-
-
-
-
640
1,942
1,070
33
336
1,266
5,287
1,233
6,520
-
2
-
-
-
3
5
-
5
-
-
(8)
(7)
(16)
-
(2)
(41)
(67)
-
1
(1)
(10)
(17)
-
(6)
(67)
(23)
5
16
52
-
5
39
117
36
83
880
-
-
-
13
976
-
TOTAL
6,493
790
(330)
(1,477)
153
976
262
Consolidated Annual Report 2019 Nuclear decommissioning provision
At December 31, 2019, the provision reflected solely the costs
Provision for environmental certificates
The provision for environmental certificates covers costs in
that will be incurred at the time of decommissioning of nucle-
respect of shortfalls in the environmental certificates need
ar plants by Endesa, a Spanish public enterprise responsible
for compliance with national or supranational environmental
for such activities in accordance with Royal Decree 1349/2003
protection requirements and mainly regards Enel Energia.
and Law 24/2005. Quantification of the costs is based on the
standard contract between Endesa and the electricity compa-
nies approved by the Ministry for the Economy in September
2001, which regulates the retirement and closing of nuclear
Provision for charges in respect of
taxes and duties
The provision for charges in respect of taxes and duties re-
power plants. The time horizon envisaged, three years, corre-
ports the estimated liability deriving from tax disputes con-
sponds to the period from the termination of power genera-
cerning direct and indirect taxes. The balance of the provision
tion to the transfer of plant management to Endesa (so-called
also includes the provision for current and potential disputes
post-operational costs) and takes account, among the various
concerning local property tax (whether the Imposta Comu-
assumptions used to estimate the amount, the quantity of
nale sugli Immobili (“ICI”) or the new Imposta Municipale
unused nuclear fuel expected at the date of closure of each
Unica (“IMU”)) in Italy. The Group has taken due account of
of the Spanish nuclear plants on the basis of the provisions of
the criteria introduced with circular no. 6/2012 of the Public
the concession agreement.
Non-nuclear plant retirement and site
restoration provision
The provision for non-nuclear plant retirement and site res-
Land Agency (which resolved interpretive issues concerning
the valuation methods for movable assets considered rele-
vant for property registry purposes, including certain assets
typical to generation plants, such as turbines) in estimating
the liability for such taxes, both for the purposes of quantify-
toration represents the present value of the estimated cost
ing the probable risk associated with pending litigation and
for the retirement and removal of non-nuclear plants where
generating a reasonable valuation of probable future charges
there is a legal or constructive obligation to do so. The provi-
on positions that have not yet been assessed by Land Agency
sion mainly regards the Endesa Group, Enel Produzione and
offices and municipalities.
the companies in Latin America. The increase in the provision
The decrease compared with the previous year, equal to €96
in 2019 reflects the Group’s decision to promote the halt in
million, mainly reflects uses, primarily in Spain and Italy.
generation with coal-fired plants, which prompted an increase
in provisions for plant retirement charges for the Bocamina I
and Tarapacá plants in Chile and of a number of plants in Italy
and Spain.
Other provisions
Other provisions cover various risks and charges, mainly in
connection with regulatory disputes and disputes with local
authorities regarding various duties and fees or other charges.
Litigation provision
The litigation provision covers contingent liabilities in respect
The decrease of €79 million for the year is mainly attributable
to the reversal of part of the provision allocated by e-distribu-
of pending litigation and other disputes. It includes an esti-
tion to manage claims by self-generators following the expi-
mate of the potential liability relating to disputes that arose
ry of the deadline for submitting claims, and the use of the
during the period, as well as revised estimates of the poten-
provision following the agreement between Edesur and local
tial costs associated with disputes initiated in prior periods.
authorities to settle reciprocal outstanding claims originated
The balance for litigation mainly regards the companies in
in 2006-2016, partly offset by an increase in provisions for en-
Spain (€144 million), Italy (€144 million) and Latin America
vironmental charges recognized by Enel Produzione.
(€723 million).
The change in the scope of consolidation is attributable to the
The decrease compared with the previous year, equal to €436
acquisition of YouSave SpA.
million, mainly reflects the change in the provision in Latin
America and Iberia, attributable in particular to the resolution
of the dispute of Enel Distribuição São Paulo with Electrobras
and a number of disputes of Edistribución Redes Digitales SL
Provision for early retirement
incentives
The provision for early retirement incentives includes the esti-
(the former Endesa Distribución Eléctrica).
mated charges related to binding agreements for the volun-
tary termination of employment contracts in response to or-
263
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements ganizational needs. The reduction of €341 million for the year
In Spain, the provisions regard the expansion, in 2015, of
reflects, among other factors, uses for incentive provisions
the Acuerdo de Salida Voluntaria (ASV) introduced in Spain in
established in Spain and Italy in previous years.
2014. The ASV mechanism was agreed in Spain in connection
In Italy, the latter is largely associated with the union-com-
with Endesa’s restructuring and reorganization plan, which
pany agreements signed in September 2013 and December
provides for the suspension of the employment contract with
2015, implementing, for a number of companies in Italy, the
tacit annual renewal. With regard to that plan, on December
mechanism provided for under Article 4, paragraphs 1-7 ter, of
30, 2014, the company had signed an agreement with union
Law 92/2012 (the Fornero Act). The latter agreement envisag-
representatives in which it undertook to not exercise the op-
es the voluntary termination, in Italy, of about 6,100 employ-
tion to request a return to work at subsequent annual renewal
ees in 2016-2020.
dates for the employees participating in the mechanism.
38. Other non-current liabilities - €3,706 million
Millions of euro
Accrued operating expenses and deferred income
Other items
Total
at Dec. 31, 2019 at Dec. 31, 2018
Change
552
3,154
3,706
484
1,417
1,901
68
1,737
1,805
14.0%
-
95.0%
The increase in “Other items” of €1,737 million is essentially
es, similar to VAT). It also reflects the closure of the dispute
due to liabilities to customers in Brazil amounting to €1,278
between Enel Distribuição São Paulo and Eletrobras, which
million recognized against “other non-current assets” follow-
involved the use of the provision for risks and charges in re-
ing the first-level ruling on disputes brought by distribution
spect of other non-current liabilities amounting to €297 mil-
companies against local authorities to request the elimination
lion, as well as €73 million recognized under other current
of double taxation in the application of the PIS and COFINS
liabilities.
taxes on ICMS (tax on the circulation of goods and servic-
39. Trade payables - €12,960 million
The item amounted to €12,960 million (€13,387 million in
More specifically, trade payables falling due in less than 12
2018) and includes payables in respect of electricity supplies,
months amounted to €12,322 million (€12,718 million in
fuel, materials, equipment associated with tenders, and oth-
2018), while those with falling due in more than 12 months
er services.
amounted to €638 million (€669 million in 2018).
264
Consolidated Annual Report 2019 40. Other current financial liabilities - €754 million
Millions of euro
Deferred financial liabilities
Other items
Total
at Dec. 31, 2019
at Dec. 31, 2018
Change
607
147
754
654
134
788
(47)
13
(34)
-7.2%
9.7%
-4.3%
The decrease in other current financial liabilities is attributable
The other items mainly refer to amounts due for accrued in-
to the €47 million decrease in deferred financial liabilities as a
terest.
result of a decrease in accrued liabilities on bonds.
41. Net financial position and long-term financial receivables
and securities - €45,175 million
The following table shows the net financial position and long-term financial receivables and securities on the basis of the items
on the consolidated balance sheet.
Millions of euro
Long-term borrowings
Short-term borrowings
Other current financial payables (1)
Current portion of long-term borrowings
Other non-current financial assets included in net financial debt
Other current financial assets included in net financial debt
Cash and cash equivalents
Total
Notes
at Dec. 31, 2019 at Dec. 31, 2018
Change
43
43
43
26.1
30.1
32
54,174
3,917
47
3,409
(3,185)
(4,158)
(9,029)
45,175
48,983
3,616
28
3,367
(3,272)
(5,003)
(6,630)
41,089
5,191
301
19
42
87
845
(2,399)
4,086
10.6%
8.3%
67.9%
1.2%
-2.7%
-16.9%
36.2%
9.9%
(1) Includes current financial payables included under other current financial liabilities.
Pursuant to CONSOB instructions of July 28, 2006, the fol-
cial debt as provided for in the presentation methods of the
lowing table reports the net financial position at December
Enel Group.
31, 2019, and December 31, 2018, reconciled with net finan-
265
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
Cash and equivalents on hand
Bank and post office deposits
Other investments of liquidity
Securities
Liquidity
Short-term financial receivables
Short-term portion of long-term financial receivables
Current financial receivables
Short-term bank debt
Commercial paper
Short-term portion of long-term bank debt
Bonds issued (short-term portion)
Other borrowings (short-term portion)
Other short-term financial payables (1)
Total short-term financial debt
Net short-term financial position
Debt to banks and financing entities
Bonds
Other borrowings
Long-term financial position
at Dec. 31, 2019 at Dec. 31, 2018
Change
87
7,910
1,032
51
9,080
2,522
1,585
4,107
(579)
(2,284)
(1,121)
(1,906)
(382)
(1,101)
(7,373)
5,814
(8,407)
(43,294)
(2,473)
(54,174)
328
5,531
771
63
6,693
3,418
1,522
4,940
(512)
(2,393)
(1,830)
(1,341)
(196)
(739)
(7,011)
4,622
(8,819)
(38,633)
(1,531)
(48,983)
(241)
2,379
261
(12)
2,387
(896)
63
(833)
(67)
109
709
(565)
(186)
(362)
(362)
1,192
412
(4,661)
(942)
(5,191)
(3,999)
(87)
(4,086)
NET FINANCIAL POSITION as per CONSOB Communication
(48,360)
(44,361)
Long-term financial receivables and securities
NET FINANCIAL DEBT
3,185
(45,175)
3,272
(41,089)
(1) Includes current financial payables included under other current financial liabilities.
42. Other current liabilities - €13,161 million
Millions of euro
Payables due to customers
Payables due to institutional market operators
Payables due to employees
Other tax payables
Payables due to social security institutions
Contingent considerations
Payables for put options granted to minority shareholders
Current accrued expenses and deferred income
Payables for dividends
Other
Total
at Dec. 31, 2019
at Dec. 31, 2018
Change
1,670
4,507
496
1,082
212
116
3
372
2,143
2,560
13,161
1,773
3,945
472
1,093
212
109
-
459
1,913
2,131
12,107
(103)
562
24
(11)
-
7
3
(87)
230
429
1,054
Payables due to customers include €880 million (€936 mil-
contract, deposits for electricity sales, the use of which is not
lion at December 31, 2018) in security deposits related to
restricted in any way, are classified as current liabilities given
amounts received from customers in Italy as part of electric-
that the Company does not have an unconditional right to de-
ity and gas supply contracts. Following the finalization of the
fer repayment beyond 12 months.
266
-73.5%
43.0%
33.9%
-19.0%
35.7%
-26.2%
4.1%
-16.9%
-13.1%
4.6%
38.7%
-42.1%
-94.9%
-49.0%
-5.2%
25.8%
4.7%
-12.1%
-61.5%
-10.6%
-9.0%
-2.7%
-9.9%
-5.8%
14.2%
5.1%
-1.0%
-
6.4%
-
-19.0%
12.0%
20.1%
8.7%
Consolidated Annual Report 2019 Payables due to institutional market operators include paya-
total interim dividend amounted to €1,627 million, compared
bles arising from the application of equalization mechanisms
with €1,423 million the previous year.
to electricity purchases on the Italian market amounting to
The increase in other payables mainly reflects the settlement
€3,064 million (€2,546 million at December 31, 2018) and on
of a dispute between Enel Distribuição São Paulo and Eletro-
the Spanish market amounting to €1,267 million (€1,131 mil-
bras, which includes €73 million under current items but also
lion at December 31, 2018), and on the Latin American mar-
includes a non-current portion (readers are invited to consult
ket amounting to €176 million (€268 million at December 31,
the appropriate note for more on that item). It also reflects
2018).
the recognition of the liability connected with the acquisition
The change in payables for dividends mainly refers the recog-
through financial intermediaries (using share swaps) of addi-
nition of the interim dividend of Enel SpA, which under the
tional equity stakes in Enel Américas and Enel Chile. The overall
rules is settled in January of the following year. In 2019, the
amount of that debt at December 31, 2019 was €358 million.
43. Financial instruments
This note provides disclosures necessary for users to assess the significance of financial instruments for the Company’s finan-
cial position and performance.
43.1 Financial assets by category
The following table reports the carrying amount for each ca-
down into current and non-current financial assets, showing
hedging derivatives and derivatives measured at fair value
tegory of financial asset provided for under IFRS 9, broken
through profit or loss separately.
Millions of euro
Non-current
Current
Notes
at Dec. 31, 2019 at Dec. 31, 2018 at Dec. 31, 2019 at Dec. 31, 2018
Financial assets at amortized cost
Financial assets at FVOCI
Financial assets at fair value through profit or loss
Derivative financial assets at FVTPL
Other financial assets at FVTPL
Financial assets designated upon initial recognition (fair value
option)
Total financial assets at fair value through profit or loss
Derivative financial assets designated as hedging instruments
Fair value hedge derivatives
Cash flow hedge derivatives
Total derivative financial assets designated as hedging
instruments
TOTAL
43.1.1
43.1.2
43.1.3
43.1.3
43.1.3
43.1.4
43.1.4
4,258
480
29
2,370
-
2,399
32
1,322
1,354
8,491
4,292
413
31
2,080
-
2,111
25
949
974
26,377
61
25,268
72
3,086
3,163
-
-
-
-
3,086
3,163
-
979
979
4
747
751
7,790
30,503
29,254
For more information on fair value measurement, see note 47 “Assets measured at fair value”.
267
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 43.1.1 Financial assets measured at amortized cost
The following table reports financial assets measured at
amortized cost by nature, broken down into current and
non-current financial assets.
Millions of euro
Cash and cash equivalents
Trade receivables
Short-term portion of long-term financial receivables
Cash collateral
Other financial receivables
Financial assets from service concession arrangements at
amortized cost
Other financial assets at amortized cost
Notes
29
26.1
26
26, 27
Non-current
Current
at Dec. 31,
2019
at Dec. 31,
2018 Notes
at Dec. 31,
2019
at Dec. 31,
2018
-
917
-
-
-
835
-
-
2,769
2,912
32
29
30.1
30.1
30.1
345
30
340
232
9,029
12,166
1,585
2,153
370
13
6,630
12,752
1,522
2,559
859
12
934
200
30, 31
1,061
Total
4,258
4,292
26,377
25,268
Impairment of financial assets at amortized cost
- 12-month ECL, for financial assets for which there has
Financial assets measured at amortized cost at December 31,
not been a significant increase in credit risk since initial
2019 amounted to €3,370 million (€3,083 million at December
recognition;
31, 2018) and are recognized net of allowances for expected
- lifetime ECL, for financial assets for which there has
credit losses.
been a significant increase in credit risk or which are
The Group mainly has the following types of financial assets
credit impaired (i.e., defaulted based on past due in-
measured at amortized cost subject to impairment testing:
formation).
> cash and cash equivalents;
> the simplified approach, for trade receivables, contract
> trade receivables and contract assets;
assets and lease receivables with or without a significant
> financial receivables; and
> other financial assets.
financing component, based on lifetime ECL without track-
ing changes in credit risk.
While cash and cash equivalents are also subject to the im-
For more information on assets deriving from contracts with
pairment requirements of IFRS 9, the identified impairment
customers, please see note 25 “Current/Non-current assets/
loss was immaterial.
(liabilities) from contracts with customers”.
The expected credit loss (ECL), determined using probabili-
A forward-looking adjustment can be applied considering
ty of default (PD), loss given default (LGD) and exposure at
qualitative and quantitative information in order to reflect
default (EAD), is the difference between all contractual cash
future events and macroeconomic developments that could
flows that are due in accordance with the contract and all
impact the risk associated with the portfolio or financial in-
cash flows that are expected to be received (i.e., all shortfalls)
strument.
discounted at the original effective interest rate (EIR).
Depending on the nature of the financial assets and the credit
For calculating ECL, the Group applies two different approaches:
risk information available, the assessment of the increase in
> the general approach, for financial assets other than trade
credit risk can be performed on:
receivables, contract assets and lease receivables. This
> an individual basis, if the receivables are individually signif-
approach, based on an assessment of any significant in-
icant and for all receivables which have been individually
crease in credit risk since initial recognition, is performed
identified for impairment based on reasonable and sup-
comparing the PD at origination with PD at the reporting
portable information;
date, at each reporting date.
> a collective basis, if no reasonable and supportable infor-
Then, based on the results of the assessment, a loss al-
mation is available without undue cost or effort to measure
lowance is recognized based on 12-month ECL or lifetime
expected credit losses on an individual instrument basis.
ECL (i.e., staging):
When there is no reasonable expectation of recovering a fi-
268
Consolidated Annual Report 2019 nancial asset in its entirety or a portion thereof, the gross car-
The following table reports expected credit losses on financial
rying amount of the financial asset shall be reduced.
assets measured at amortized cost on the basis of the gener-
A write-off represents a derecognition event (e.g. the right to
al simplified approach.
cash flows is legally or contractually extinguished, transferred
or expired).
Millions of euro
Cash and cash equivalents
Trade receivables
Financial receivables
Other financial assets at amortized cost
Total
at Dec. 31, 2019
at Dec. 31, 2018
Allowance
for
expected
losses
-
Gross
amount
9,029
Total
9,029
Gross
amount
6,632
Allowance
for
expected
losses
2
Total
6,630
16,063
2,980
13,083
16,415
2,828
13,587
7,108
1,805
231
159
6,877
1,646
8,081
1,515
229
24
7,852
1,491
34,005
3,370
30,635
32,643
3,083
29,560
To measure expected losses, the Group assesses trade recei-
is 180 days past due. Accordingly, beyond this time limit,
vables and contract assets with the simplified approach, both
trade receivables are presumed to be credit impaired); and
on an individual basis (e.g. government entities, authorities,
> specific clusters are defined on the basis of specific mar-
financial counterparties, wholesale sellers, traders and large
kets, business and risk characteristics.
companies, etc.) and a collective basis (e.g. retail customers).
Contract assets substantially have the same risk characteristi-
In the case of individual assessments, PD is generally obtai-
In order to measure the ECL for trade credits on a collective
ned from external providers.
basis, as well as for contract assets, the Group uses the fol-
cs as trade receivables for the same types of contracts.
lowing assumptions regarding the ECL parameters:
Otherwise, in the case of collective assessments, trade re-
> PD, assumed equal to the average default rate, is calcula-
ceivables are grouped on the basis of their shared credit risk
ted by cluster and considering historical data from at least
characteristics and information on past due positions, consi-
24 months;
dering a specific definition of default.
> LGD is a function of the recovery rates for each cluster,
Based on each business and local regulatory framework, as
discounted using the effective interest rate; and
well as differences between customer portfolios, including
> EAD is estimated as equal to the carrying amount at the re-
their default and recovery rates (comprising expectations for
porting date net of cash deposits, including invoices issued
recovery beyond 90 days):
but not past due and invoices to be issued.
> the Group mainly defines a defaulted position as one that
269
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table reports changes in the allowance for expected credit losses on financial receivables in accordance with the
ECL 12-month
ECL lifetime
general simplified approach.
Millions of euro
Opening balance at Jan. 1, 2018
Provisions
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2018
Opening balance at Jan. 1, 2019
Provisions
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2019
7
-
-
(188)
268
87
87
-
-
(1)
(8)
78
23
4
-
(2)
117
142
142
26
-
(3)
(12)
153
2,609
1,367
(897)
(281)
30
2,828
2,828
1,239
(834)
(202)
(51)
2,980
The following table reports changes in the allowance for expected credit losses on trade receivables.
Millions of euro
Opening balance at Jan. 1, 2018
Provisions
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2018
Opening balance at Jan. 1, 2019
Provisions
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2019
The following table reports changes in the allowance for expected credit losses on other financial assets at amortized cost.
Millions of euro
Opening balance at Jan. 1, 2018
Provisions
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2018
Opening balance at Jan. 1, 2019
Provisions
Uses
Reversals to profit or loss
Other changes
Closing balance at Dec. 31, 2019
ECL lifetime
15
3
-
(3)
9
24
24
105
-
(7)
37
159
Note 44 “Risk management” provides additional information on the exposure to credit risk and expected losses.
270
Consolidated Annual Report 2019 43.1.2 Financial assets at fair value through other
comprehensive income
The following table shows financial assets at fair value throu-
gh other comprehensive income by nature, broken down into
current and non-current financial assets.
Millions of euro
Non-current
Current
Equity investments in other entities at FVOCI
Securities
Total
Changes in financial assets at FVOCI
Equity investments in other entities
Millions of euro
Opening balance at Jan. 1, 2019
Purchases
Sales
Changes in fair value through OCI
Other changes
Closing balance at Dec. 31, 2019
Securities at FVOCI
Millions of euro
Opening balance at Jan. 1, 2019
Purchases
Sales
Changes in fair value through OCI
Reclassifications
Other changes
Closing balance at Dec. 31, 2019
Notes
26
26.1
at Dec. 31,
2019
at Dec. 31,
2018
Notes
at Dec. 31,
2019
at Dec. 31,
2018
64
416
480
53
360
413
30.1
-
61
61
-
72
72
Non-current
Current
53
87
-
-
(76)
64
-
-
-
-
-
-
Non-current
Current
360
160
(53)
10
(61)
-
416
72
-
-
-
61
(72)
61
271
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 43.1.3 Financial assets at fair value through profit
or loss
The following table shows financial assets at fair value throu-
gh profit or loss by nature, broken down into current and
non-current financial assets.
Millions of euro
Non-current
Current
Derivatives at FVTPL
Equity investments in other entities at FVTPL
Financial assets from service concession arrangements at FVTPL
Total
Notes
at Dec. 31,
2019
at Dec. 31,
2018
Notes
at Dec. 31,
2019
at Dec. 31,
2018
46
26
26
29
8
2,362
2,399
46
30
31
10
2,070
2,111
3,086
3,163
-
-
-
-
3,086
3,163
43.1.4 Derivative financial assets designated as hedging instruments
For more information on derivative financial assets, please see note 46 “Derivatives and hedge accounting”.
43.2 Financial liabilities by category
The following table shows the carrying amount for each ca-
hedging derivatives and derivatives measured at fair value
tegory of financial liability provided for under IFRS 9, broken
through profit or loss separately.
down into current and non-current financial liabilities, showing
Millions of euro
Notes
Non-current
Current
Financial liabilities measured at amortized cost
Financial liabilities at fair value through profit or loss
Derivative financial liabilities at FVTPL
Total financial liabilities at fair value through profit or loss
Derivative financial liabilities designated as hedging
instruments
Fair value hedge derivatives
Cash flow hedge derivatives
Total derivative financial liabilities designated as hedging
instruments
at Dec. 31, 2019 at Dec. 31, 2018
at Dec. 31, 2019 at Dec. 31, 2018
43.2.1
54,931
49,824
28,261
27,567
43.4
43.4
43.4
20
20
1
2,386
2,387
34
34
-
2,575
2,575
2,981
2,981
-
573
573
3,135
3,135
-
1,208
1,208
TOTAL
57,338
52,433
31,815
31,910
For more information on fair value measurement, please see note 48 “Liabilities measured at fair value”.
272
Consolidated Annual Report 2019 43.2.1 Financial liabilities measured at amortized
cost
The following table shows financial liabilities at amortized
cost by nature, broken down into current and non-current fi-
nancial liabilities.
Millions of euro
Long-term borrowings
Short-term borrowings
Trade payables
Other financial liabilities
Total
Notes
43.3
39
38
Non-current
Current
at Dec. 31,
2019
at Dec. 31,
2018
Notes
at Dec. 31,
2019
at Dec. 31,
2018
54,174
48,983
-
638
119
-
669
172
54,931
49,824
43.3
43.3
39
42
3,409
3,917
12,322
8,613
28,261
3,367
3,616
12,718
7,866
27,567
273
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 43.3 Borrowings
43.3.1 Long-term borrowings (including the portion
falling due within 12 months) - €57,583 million
is given by official prices, while for unlisted debt instruments,
fair value is determined using valuation techniques appropria-
te for each category of financial instrument and the associa-
ted market data for the reporting date, including the credit
spreads of Enel SpA.
The following table reports the carrying amount and fair value
for each category of debt, including the portion falling due
within 12 months. For listed debt instruments, the fair value
The table reports the situation of long-term borrowings and
repayment schedules at December 31, 2019, broken down by
type of borrowing and interest rate.
Millions of euro
Nominal
value
Carrying
amount
Current
portion
Portion
due in
more
than 12
months
Fair
value
Nominal
value
Carrying
amount
Current
portion
Portion
due in
more
than 12
months
Changes
in carrying
amount
Fair
value
at Dec. 31, 2019
at Dec. 31, 2018
Bonds:
- listed, fixed rate
27,312
26,593
1,621
24,972
31,073
23,811
23,099
- listed, floating rate
3,515
3,488
258
3,230
3,655
3,187
3,166
845
305
22,254
25,944
2,861
3,288
- unlisted, fixed rate
14,458
14,359
- unlisted, floating rate
760
760
-
27
14,359
15,794
12,860
12,758
-
12,758
12,563
733
753
951
951
191
760
932
Total bonds
46,045
45,200
1,906
43,294
51,275
40,809
39,974
1,341
38,633
42,727
Bank borrowings:
- fixed rate
896
893
- floating rate
8,610
8,565
70
70
279
842
-
614
947
7,723
8,642
1,495
8,987
1,486
8,954
477
1,009
1,539
1,353
7,601
8,817
70
70
209
209
-
209
210
3,494
322
1,601
(191)
5,226
(593)
(389)
(139)
- use of revolving
credit lines
Total bank
borrowings
Leases:
- fixed rate
- floating rate
Total leases
Other non-bank
borrowings:
- fixed rate
- floating rate
Total other non-bank
borrowings
Total fixed-rate
borrowings
Total floating-rate
borrowings
9,576
9,528
1,121
8,407
9,659
10,691
10,649
1,830
8,819
10,566
(1,121)
1,856
1,856
108
108
1,964
1,964
792
86
878
822
69
891
257
18
275
92
15
107
1,599
1,856
90
108
1,689
1,964
730
54
784
811
75
886
561
96
657
1,008
101
561
96
657
988
82
1,109
1,070
49
16
65
115
16
131
512
80
592
561
96
657
873
1,024
66
86
939
1,110
1,295
12
1,307
(166)
(13)
(179)
45,314
44,523
2,249
42,274
50,481
39,735
38,892
1,486
37,406
41,631
5,631
13,149
13,060
1,160
11,900
13,303
13,531
13,458
1,881
11,577
13,429
(398)
TOTAL
58,463
57,583
3,409
54,174
63,784
53,266
52,350
3,367
48,983
55,060
5,233
274
Consolidated Annual Report 2019 The table below reports long-term financial debt by currency and interest rate.
Long-term financial debt by currency and interest rate
Millions of euro
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
Russian ruble
Japanese yen
Other currencies
Carrying
amount Nominal value
Carrying
amount Nominal value
Current
average
nominal
interest rate
Current
effective
interest rate
at Dec. 31, 2019
at Dec. 31, 2018
at Dec. 31, 2019
27,272
20,103
4,354
1,381
2,412
419
414
426
225
-
577
27,915
20,239
4,394
1,381
2,458
419
421
426
227
-
583
23,388
18,541
4,750
1,543
2,074
403
700
404
247
-
300
24,025
18,720
4,794
1,543
2,114
403
710
404
247
-
306
2.4%
4.8%
6.1%
7.6%
7.4%
2.1%
6.9%
6.1%
8.5%
-
2.9%
5.0%
6.2%
7.6%
7.5%
2.1%
7.0%
6.1%
8.5%
-
Total non-euro currencies
TOTAL
30,311
57,583
30,548
58,463
28,962
52,350
29,241
53,266
Long-term financial debt denominated in currencies other
gely attributable to new borrowing in US dollars and Brazilian
than the euro increased by €1,349 million. The change is lar-
reals.
Change in the nominal value of long-term debt
Millions of euro
Bonds
Borrowings
- of which leases
Total financial debt
Nominal
value
at Dec. 31,
2018
IFRS 16
effects
at Jan. 01,
2019
40,809
12,457
657
53,266
-
1,370
1,370
1,370
Repayments
New
financing
Other changes
Exchange
differences Nominal value
at Dec. 31,
2019
(1,652)
(3,859)
(211)
6,349
2,550
224
(5,511)
8,899
-
(88)
(88)
(88)
539
(12)
12
527
46,045
12,418
1,964
58,463
Compared with December 31, 2019, the nominal value of long-
Enel SpA, maturing in June 2019;
term debt at December 31, 2019 increased by €5,197 million,
> a fixed-rate bond (€125 million) issued by Enel Finance In-
the net effect of €8,899 million in new borrowings, the increase
ternational, maturing in November 2019;
in financial debt under leases of €1,370 million due to the appli-
> two bonds (equivalent to €331 million) issued by Enel Dis-
cation of the new IFRS 16, and the impact of adverse exchange
tribuição São Paulo repaid in advance as part of a liability
rate developments in the amount of €527 million, only partly
management operations carried out by the company in
offset by repayments of €5,511 million and other changes in
June 2019.
debt of €(88) million.
Repayments in 2019 concerned bonds in the amount of €1,652
following:
million and borrowings totaling €3,859 million.
> €500 million in respect of loans of Enel SpA repaid in ad-
The main repayments of borrowings in the year included the
More specifically, the main bonds maturing in 2019 included:
> €200 million in respect of bank borrowings of Endesa, of
> a fixed-rate bond (equivalent to €617 million) issued by
which €46 million in subsidized loans;
vance;
275
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements > the equivalent of €459 million in respect of bank borrow-
panies in South America, of which €248 million in sustain-
ings of Enel Russia, of which €73 million in sustainable
able financing.
loans;
The main new borrowing carried out in 2019 involved bonds in
> €285 million in respect of sustainable loans of the Italian
the amount of €6,349 million and borrowings of €2,550 million.
companies;
The table below shows the main characteristics of financial
> the equivalent of €1,782 million in respect of loans of com-
transactions carried out in 2019.
Issuer/Borrower
Issue/Grant
date
Amount in
millions of
euro
Currency
Interest rate Interest rate type
Maturity
Bonds
Enel Finance
International
Enel Finance
International
Enel Finance
International
Enel Finance
International
Enel Finance
International
Codensa
Codensa
Enel Distribuição
Ceará
Enel Distribuição
Ceará
Enel Distribuição
Rio
Enel Distribuição
São Paulo
Enel Distribuição
São Paulo
Enel Green
Power Volta
Grande
Enel Green
Power Volta
Grande
Enel Distribuição
Goiás
Enel Distribuição
Rio
21.01.2019
1,000
EUR
1.50%
Fixed rate
21.07.2025
10.09.2019
1,336
USD
2.65%
Fixed rate
10.09.2024
17.10.2019
1,000
EUR
0.00%
Fixed rate
17.06.2024
17.10.2019
1,000
EUR
0.375%
Fixed rate
17.06.2027
17.10.2019
500
EUR
1.125%
Fixed rate
17.10.2034
07.03.2019
07.03.2019
07.03.2019
07.03.2019
54
76
77
66
COP
COP
BRL
BRL
CPI + 3.56%
Floating rate
07.03.2029
6.30%
Fixed rate
07.03.2023
CDI + 0.50% p.a.
Floating rate
15.03.2023
IPCA + 4.50%
p.a.
Floating rate
15.03.2024
12.04.2019
221
BRL
108% CDI
Floating rate
15.03.2024
28.06.2019
155
BRL
CDI + 0.80% p.a.
Floating rate
15.05.2025
28.06.2019
177
BRL
05.11.2019
116
BRL
05.11.2019
63
BRL
5,840
IPCA + 4.01%
p.a.
IPCA + 3.70%
p.a.
IPCA + 3.70%
p.a.
Floating rate
15.05.2026
Floating rate
15.10.2029
Floating rate
15.10.2029
24.01.2019
129
USD
Libor 3M + 0.10%
Floating rate
29.01.2021
04.02.2019
89
BRL
8.40%
Fixed rate
07.02.2022
Endesa
19.03.2019
335
EUR
Endesa
20.05.2019
300
EUR
e-distribuzione
20.06.2019
250
EUR
Euribor 6M +
0.45%
Euribor 6M +
0.54%
Euribor 6M +
0.41%
Floating rate
19.03.2034
Floating rate
10.05.2031
Floating rate
20.06.2034
Enel Russia
24.07.2019
71
RUB
7.67%
Fixed rate
24.07.2020
Total bonds
Bank borrowings:
Total bank borrowings
1,174
The Group’s main long-term financial liabilities are governed
um-Term Notes program, issues of subordinated unconverti-
by covenants that are commonly adopted in international busi-
ble hybrid bonds (so-called “hybrid bonds”) and loans granted
ness practice. These liabilities primarily regard the bond issues
by banks and other financial institutions (including the Europe-
carried out within the framework of the Global/Euro Medi-
an Investment Bank and Cassa Depositi e Prestiti SpA).
276
Consolidated Annual Report 2019 The main covenants regarding bond issues carried out within
> negative pledge clauses, under which the borrower and, in
the framework of the Global/Euro Medium-Term Notes pro-
some cases, the guarantor are subject to limitations on the
gram of (i) Enel and Enel Finance International NV (including
establishment of mortgages, liens or other encumbrances
the green bonds of Enel Finance International NV guaranteed
on all or part of their respective assets, with the exception
by Enel SpA, which are used to finance the Group’s so-called
of expressly permitted encumbrances;
eligible green projects) and those regarding bonds issued by
> disposals clauses, under which the borrower and, in some
Enel Finance International NV on the US market guaranteed
cases, the guarantor may not dispose of their assets or
by Enel SpA can be summarized as follows:
operations, with the exception of expressly permitted dis-
> negative pledge clauses under which the issuer and the
posals;
guarantor may not establish or maintain mortgages, liens
> pari passu clauses, under which the payment undertak-
or other encumbrances on all or part of its assets or reve-
ings of the borrower have the same seniority as its other
nue to secure certain financial liabilities, unless the same
unsecured and unsubordinated payment obligations;
encumbrances are extended equally or pro rata to the
> change of control clauses, under which the borrower and,
bonds in question;
in some cases, the guarantor could be required to rene-
> pari passu clauses, under which the bonds and the asso-
gotiate the terms and conditions of the financing or make
ciated security constitute a direct, unconditional and un-
compulsory early repayment of the loans granted;
secured obligation of the issuer and the guarantor and are
> rating clauses, which provide for the borrower or the guar-
issued without preferential rights among them and have
antor to maintain their rating above a certain specified lev-
at least the same seniority as other present and future un-
el;
subordinated and unsecured bonds of the issuer and the
> cross-default clauses, under which the occurrence of a de-
guarantor;
fault event in respect of a specified financial liability (above
> cross-default clauses, under which the occurrence of a de-
a threshold level) of the issuer or, in some cases, the guar-
fault event in respect of a specified financial liability (above
antor constitutes a default in respect of the liabilities in
a threshold level) of the issuer, the guarantor or, in some
question, which become immediately repayable.
cases, “significant” subsidiaries constitutes a default in
In some cases the covenants are also binding for the signif-
respect of the liabilities in question, which become imme-
icant companies or subsidiaries of the obligated parties. All
diately repayable.
the financial borrowings considered specify “events of de-
During 2019, Enel Finance International NV issued two “sus-
fault” typical of international business practice, such as, for
tainable” bonds on the European market (as part of the Euro
example, insolvency, bankruptcy proceedings or the entity
Medium Term Notes - EMTN bond issue program) and on the
ceases trading.
American market, both guaranteed by Enel SpA, linked to the
In addition, the guarantees issued by Enel in the interest of
achievement of a number of the Sustainable Development
e-distribuzione SpA for certain loans to e-distribuzione SpA
Goals (SDGs) of the United Nations that contain the same
from Cassa Depositi e Prestiti SpA require that at the end of
covenants as other bonds of the same type.
each six-month measurement period that Enel’s net consol-
idated financial debt shall not exceed 4.5 times annual con-
The main covenants covering Enel’s hybrid bonds can be
solidated EBITDA.
summarized as follows:
Finally, the debt of Enel Américas SA, Enel Chile SA and the
> subordination clauses, under which each hybrid bond is
other Latin American subsidiaries (notably Enel Generación
subordinate to all other bonds issued by the company and
Chile SA) contain covenants and events of default typical of
has the same seniority with all other hybrid financial in-
international business practice, which had all been complied
struments issued, being senior only to equity instruments;
with as at December 31, 2019.
> prohibition on mergers with other companies, the sale or
leasing of all or a substantial part of the company’s assets
to another company, unless the latter succeeds in all obli-
gations of the issuer.
The main covenants envisaged in the loan contracts of Enel
and Enel Finance International NV and the other Group com-
panies can be summarized as follows:
277
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table reports the impact on gross long-term debt of hedges to mitigate exchange risk.
Long-term financial debt by currency after hedging
Millions of euro
at Dec. 31, 2019
at Dec. 31, 2018
Initial debt structure
Impact of hedge
Debt structure after hedging
Initial debt structure
Impact of hedge
Debt structure after hedging
Carrying amount
Nominal amount
23,388
18,541
4,750
1,543
2,074
403
700
404
247
300
28,962
52,350
24,025
18,720
4,794
1,543
2,114
403
710
404
247
306
29,241
53,266
%
45.0%
35.1%
9.0%
2.9%
4.0%
0.8%
1.3%
0.8%
0.5%
0.6%
55.0%
100.0%
18,901
(15,064)
(4,794)
1,207
(403)
-
-
-
-
73
80
(18,901)
42,926
3,656
1,543
3,321
-
-
710
404
320
386
10,340
53,266
80.6%
6.9%
-
-
2.9%
6.2%
1.3%
0.8%
0.6%
0.7%
19.4%
100.0%
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
Russian ruble
Other currencies
Total non-euro
currencies
TOTAL
Carrying amount
Nominal amount
27,272
20,103
4,354
1,381
2,412
419
414
426
225
577
30,311
57,583
27,915
20,239
4,394
1,381
2,458
419
421
426
227
583
30,548
58,463
%
47.8%
34.6%
7.5%
2.4%
4.2%
0.7%
0.7%
0.7%
0.4%
1.0%
52.2%
100.0%
20,218
(16,445)
(4,394)
-
968
(419)
-
-
-
72
(20,218)
-
48,133
3,794
-
1,381
3,426
-
421
426
227
655
10,330
58,463
82.3%
6.5%
-
2.4%
5.9%
-
0.7%
0.7%
0.4%
1.1%
17.7%
100.0%
The amount of floating-rate debt that is not hedged against
income statement (raising borrowing costs) in the event of an
interest rate risk is the main risk factor that could impact the
increase in market interest rates.
Millions of euro
2019
2018
Floating rate
Fixed rate
Total
Pre-hedge
% Post-hedge
% Pre-hedge
% Post-hedge
17,113
45,314
62,427
27.4%
72.6%
12,208
50,219
62,427
19.6%
80.4%
17,175
39,735
56,910
30.2%
69.8%
12,983
43,927
56,910
%
22.8%
77.2%
At December 31, 2019, 27.4% of financial debt was floating
gement purposes but ineligible for hedge accounting, 80%
rate (30.2% at December 31, 2018). Taking account of hedges
of net financial debt was hedged (77% hedged at December
of interest rates considered effective pursuant to the IFRS-
31, 2018).
EU, 19.6% of net financial debt at December 31, 2019 (22.8%
at December 31, 2018) was exposed to interest rate risk. In-
These results are in line with the limits established in the risk
cluding interest rate derivatives treated as hedges for mana-
management policy.
278
Consolidated Annual Report 2019 The following table reports the impact on gross long-term debt of hedges to mitigate exchange risk.
Long-term financial debt by currency after hedging
Euro
US dollar
Pound sterling
Colombian peso
Brazilian real
Swiss franc
Chilean peso/UF
Peruvian sol
Russian ruble
Other currencies
Total non-euro
currencies
TOTAL
27,272
20,103
4,354
1,381
2,412
419
414
426
225
577
30,311
57,583
27,915
20,239
4,394
1,381
2,458
419
421
426
227
583
30,548
58,463
%
47.8%
34.6%
7.5%
2.4%
4.2%
0.7%
0.7%
0.7%
0.4%
1.0%
52.2%
100.0%
20,218
(16,445)
(4,394)
968
(419)
72
(20,218)
-
-
-
-
-
48,133
3,794
1,381
3,426
-
-
421
426
227
655
10,330
58,463
82.3%
6.5%
2.4%
5.9%
-
-
0.7%
0.7%
0.4%
1.1%
17.7%
100.0%
Millions of euro
at Dec. 31, 2019
at Dec. 31, 2018
Initial debt structure
Impact of hedge
Debt structure after hedging
Initial debt structure
Impact of hedge
Debt structure after hedging
Carrying amount
Nominal amount
Carrying amount
Nominal amount
23,388
18,541
4,750
1,543
2,074
403
700
404
247
300
28,962
52,350
24,025
18,720
4,794
1,543
2,114
403
710
404
247
306
29,241
53,266
%
45.0%
35.1%
9.0%
2.9%
4.0%
0.8%
1.3%
0.8%
0.5%
0.6%
55.0%
100.0%
18,901
(15,064)
(4,794)
-
1,207
(403)
-
-
73
80
(18,901)
-
42,926
3,656
-
1,543
3,321
-
710
404
320
386
10,340
53,266
80.6%
6.9%
-
2.9%
6.2%
-
1.3%
0.8%
0.6%
0.7%
19.4%
100.0%
279
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 43.3.2 Short-term borrowings - €3,917 million
€3,917 million, an increase of €301 million on December 31,
2018. They break down as follows.
At December 31, 2019 short-term borrowings amounted to
Millions of euro
Short-term bank borrowings
Commercial paper
Cash collateral and other financing on derivatives
Other short-term borrowings (1)
Short-term borrowings
at Dec. 31, 2019
at Dec. 31, 2018
Change
579
2,284
750
304
3,917
512
2,393
301
410
3,616
67
(109)
449
(106)
301
(1) Does not include current financial debt included in other current financial liabilities.
Short-term bank borrowings amounted to €579 million.
Commercial paper amounted to €2,284 million, issued by
43.4 Derivative financial liabilities
For more information on derivative financial liabilities, please
Enel Finance International, Enel Finance America, Endesa and
see note 46 “Derivatives and hedge accounting”.
a number of South American companies.
The main commercial paper programs include:
> €6,000 million of Enel Finance International guaranteed by
Enel SpA;
> €3,000 million of Endesa;
> $3,000 million (equivalent to €2,671 million at December
31, 2019) of Enel Finance America.
Millions of euro
Financial assets at amortized cost
Financial assets at FVOCI
Equity investments at FVOCI
Other financial assets at FVOCI
Total financial assets at FVOCI
Financial assets at FVTPL
Financial assets at FVTPL
Financial assets designated upon initial recognition (fair value option)
Total financial assets at FVTPL
Financial liabilities measured at amortized cost
(3,514)
Financial liabilities at FVTPL
Financial liabilities held for trading
Financial liabilities designated upon initial recognition (fair value option)
Total financial liabilities at FVTPL
-
-
-
43.5 Net gains and losses
The following table shows net gains and losses by category
of financial instruments, excluding derivatives.
2019
2018
Net gains/
(losses)
Of which
impairment/
reversal
of impairment
Net gains/
(losses)
Of which
impairment/
reversal
of impairment
(525)
(1,137)
(409)
(1,101)
1
5
6
177
-
177
-
-
-
(23)
-
(23)
-
-
-
-
10
4
14
385
-
385
(3,545)
-
-
-
-
-
-
188
-
188
-
-
-
-
For more details on net gains and losses on derivatives, please see note 11 “Net financial income/(expense) from derivatives”.
280
Consolidated Annual Report 2019 44. Risk management
Financial risk management governance
and objectives
As part of its operations, the Enel Group is exposed to a va-
goal of stabilizing borrowing costs and containing the cost of
funds.
This goal is pursued through the diversification of the portfo-
riety of financial risks, notably interest rate risk, exchange risk
lio of financial liabilities by contract type, maturity and inte-
and commodity risk, credit risk and liquidity risk.
rest rate, and modifying the risk profile of specific exposures
As noted in the section “Risk management” in the Report
using OTC derivatives, mainly interest rate swaps and interest
on Operations, the Group’s governance arrangements for fi-
rate options. The term of such derivatives does not exceed
nancial risks include internal committees and the establish-
the maturity of the underlying financial liability, so that any
ment of specific policies and operational limits. Enel’s primary
change in the fair value and/or expected cash flows of such
objective is to mitigate financial risks appropriately so that
contracts is offset by a corresponding change in the fair value
they do not give rise to unexpected changes in results.
and/or cash flows of the hedged position.
The Group’s policies for managing financial risks provide for
Proxy hedging techniques can be used in a number of resi-
the mitigation of the effects on performance of changes in
dual circumstances, when the hedging instruments for the
interest rates and exchange rates with the exclusion of tran-
risk factors are not available on the market or are not suffi-
slation risk (connected with consolidation of the accounts).
ciently liquid.
This objective is achieved at the source of the risk, through
For the purpose of EMIR compliance, in order to test the
the diversification of both the nature of the financial instru-
actual effectiveness of the hedging techniques adopted, the
ments and the sources of revenue, and by modifying the risk
Group subjects its hedge portfolios to periodic statistical as-
profile of specific exposures with derivatives entered into on
sessment.
over-the-counter markets or with specific commercial agree-
Using interest rate swaps, the Enel Group agrees with the
ments.
counterparty to periodically exchange floating-rate interest
As part of its governance of financial risks, Enel regularly mo-
flows with fixed-rate flows, both calculated on the same no-
nitors the size of the OTC derivatives portfolio in relation to
tional principal amount.
the threshold values set by regulators for the activation of
Floating-to-fixed interest rate swaps transform floating-rate fi-
clearing obligations (EMIR - European Market Infrastructure
nancial liabilities into fixed rate liabilities, thereby neutralizing
Regulation no. 648/2012 of the European Parliament and of
the exposure of cash flows to changes in interest rates.
the Council). During 2019, no overshoot of those threshold
Fixed-to-floating interest rate swaps transform fixed rate fi-
values was detected.
nancial liabilities into floating-rate liabilities, thereby neutrali-
There were no changes in the sources of exposure to such
zing the exposure of their fair value to changes in interest
risks compared with the previous year.
rates.
Interest rate risk
Interest rate risk derives primarily from the use of financial
criteria for floating-rate financial liabilities.
Some structured borrowings have multi-stage cash flows he-
instruments and manifests itself as unexpected changes in
dged by interest rate swaps that at the reporting date, and for
charges on financial liabilities, if indexed to floating rates and/
a limited time, provide for the exchange of fixed-rate interest
Floating-to-floating interest rate swaps transform the indexing
or exposed to the uncertainty of financial terms and conditions
flows.
in negotiating new debt instruments, or as an unexpected
Interest rate options involve the exchange of interest diffe-
change in the value of financial instruments measured at fair
rences calculated on a notional principal amount once certain
value (such as fixed-rate debt).
thresholds (strike prices) are reached. These thresholds speci-
The main financial liabilities held by the Group include bonds,
fy the effective maximum rate (cap) or the minimum rate (flo-
bank borrowings, payables to other lenders, commercial pa-
or) to which the synthetic financial instrument will be indexed
per, derivatives, cash deposits received to secure commercial
as a result of the hedge. Certain hedging strategies provide
or derivative contracts (guarantees, cash collateral).
for the use of combinations of options (collars) that establish
The Enel Group mainly manages interest rate risk through
the minimum and maximum rates at the same time. In this
the definition of an optimal financial structure, with the dual
case, the strike prices are normally set so that no premium is
281
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements paid on the contract (zero cost collars).
uncertainty about future interest rate developments because
Such contracts are normally used when the fixed interest rate
they make it possible to benefit from any decrease in interest
that can be obtained in an interest rate swap is considered
rates.
too high with respect to market expectations for future in-
The following table reports the notional amount of interest
terest rate developments. In addition, interest rate options
rate derivatives at December 31, 2019 and December 31,
are also considered most appropriate in periods of greater
2019 broken down by type of contract.
Millions of euro
Notional amount
Floating-to-fixed interest rate swaps
Fixed-to-floating interest rate swaps
Fixed-to-fixed interest rate swaps
Floating-to-floating interest rate swaps
Interest rate options
Total
2019
7,932
152
-
327
50
8,461
2018
10,032
154
-
165
50
10,401
For more details on interest rate derivatives, please see note
financial expense associated with unhedged gross debt.
46 “Derivatives and hedge accounting”.
These market scenarios are obtained by simulating parallel in-
creases and decreases in the yield curve as at the reporting date.
Interest rate risk sensitivity analysis
There were no changes introduced in the methods and as-
Enel analyzes the sensitivity of its exposure by estimating the
sumptions used in the sensitivity analysis compared with the
effects of a change in interest rates on the portfolio of finan-
previous year.
cial instruments.
With all other variables held constant, the Group’s profit be-
More specifically, sensitivity analysis measures the potential
fore tax would be affected by a change in the level of interest
impact on profit or loss and on equity of market scenarios that
rates as follows.
would cause a change in the fair value of derivatives or in the
Millions of euro
2019
Change in financial expense on gross long-term floating-rate debt
after hedging
Change in fair value of derivatives classified as non-hedging
instruments
Change in fair value of derivatives designated as hedging
instruments
Cash flow hedges
Fair value hedges
Pre-tax impact on profit
or loss
Pre-tax impact on equity
Increase
Decrease
Increase
Decrease
21
6
-
-
(21)
(6)
-
-
-
-
166
-
-
-
(166)
-
Basis
points
25
25
25
25
At December 31, 2019, 22.5% (25.4% at December 31, 2018)
denominated in a currency other than the currency of account.
of gross long-term financial debt was floating rate. Taking ac-
The Group’s consolidated financial statements are also exposed
count of effective cash flow hedges of interest rate risk (in ac-
to translation risk as a result of the conversion of the financial
cordance with the provisions of the IFRS-EU), 85.9% of gross
statements of foreign subsidiaries, which are denominated in
long-term financial debt was hedged at December 31, 2019
local currencies, into euros as the Group’s currency of account.
(82.5% at December 31, 2018).
The Group’s exposure to exchange risk is connected with the
Exchange risk
Exchange risk mainly manifests itself as unexpected changes
purchase or sale of fuels and power, investments (cash flows
for capitalized costs), dividends and the purchase or sale of
equity investments, commercial transactions and financial as-
in the financial statement items associated with transactions
sets and liabilities.
282
Consolidated Annual Report 2019 The Group policies for managing exchange risk provide for the
Currency forwards are contracts in which the counterparties
mitigation of the effects on profit or loss of changes in the
agree to exchange principal amounts denominated in different
level of exchange rates, with the exception of the translation
currencies at a specified future date and exchange rate (the
effects connected with consolidation.
strike). Such contracts may call for the actual exchange of the
In order to minimize the exposure to exchange risk, Enel imple-
two principal amounts (deliverable forwards) or payment of
ments diversified revenue and cost sources geographically, and
the difference generated by differences between the strike
uses indexing mechanisms in commercial contracts. Enel also
exchange rate and the prevailing exchange rate at maturity
uses various types of derivative, typically on the OTC market.
(non-deliverable forwards). In the latter case, the strike rate
The derivatives in the Group’s portfolio of financial instru-
and/or the spot rate can be determined as averages of the
ments include cross currency interest rate swaps, currency
rates observed in a given period.
forwards and currency swaps. The term of such contracts
Currency swaps are contracts in which the counterparties en-
does not exceed the maturity of the underlying instrument,
ter into two transactions of the opposite sign at different future
so that any change in the fair value and/or expected cash
dates (normally one spot, the other forward) that provide for
flows of such instruments offsets the corresponding change
the exchange of principal denominated in different currencies.
in the fair value and/or cash flows of the hedged position.
Cross currency interest rate swaps are used to transform a
The following table reports the notional amount of transac-
long-term financial liability denominated in currency other
tions outstanding at December 31, 2019 and December 31,
than the currency of account into an equivalent liability in the
2018, broken down by type of hedged item.
currency of account.
Millions of euro
Cross currency interest rate swaps (CCIRSs) hedging debt denominated in currencies other
than the euro
Currency forwards hedging exchange risk on commodities
Currency forwards hedging future cash flows in currencies other than the euro
Other currency forwards
Total
Notional amount
2019
22,756
4,291
4,760
1,488
33,294
2018
24,712
4,924
5,386
1,584
36,606
More specifically, these include:
Taking account of hedges of exchange risk, the percentage
> CCIRSs with a notional amount of €22,756 million to hedge
of debt not hedged against that risk amounted to 18% at De-
the exchange risk on debt denominated in currencies other
cember 31, 2019 (19% at December 31, 2018).
than the euro (€24,712 million at December 31, 2018);
> currency forwards with a total notional amount of €9,051
Exchange risk sensitivity analysis
million used to hedge the exchange risk associated with
The Group analyses the sensitivity of its exposure by estimating
purchases and sales of natural gas, purchases of fuel and
the effects of a change in exchange rates on the portfolio of fi-
expected cash flows in currencies other than the euro
nancial instruments.
(€10,310 million at December 31, 2018);
More specifically, sensitivity analysis measures the potential im-
> other currency forwards include OTC derivatives transactions
pact on profit or loss and equity of market scenarios that would
carried out to mitigate exchange risk on expected cash flows
cause a change in the fair value of derivatives or in the financial ex-
in currencies other than the currency of account connected
pense associated with unhedged gross medium/long-term debt.
with the purchase of investment goods in the renewables
These scenarios are obtained by simulating the appreciation/
and infrastructure and networks sectors (new generation dig-
depreciation of the euro against all of the currencies compared
ital meters), on operating expenses for the supply of cloud
with the value observed as at the reporting date.
services and on revenue from the sale of renewable energy.
There were no changes in the methods or assumptions used in
At December 31, 2019, 52% (55% at December 31, 2018) of
the sensitivity analysis compared with the previous year.
Group long-term debt was denominated in currencies other
With all other variables held constant, the profit before tax would
than the euro.
be affected by changes in exchange rates as follows.
283
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
2019
Change in fair value of derivatives classified as non-hedging
instruments
Change in fair value of derivatives designated as hedging
instruments
Pre-tax impact on
profit or loss
Pre-tax impact on equity
Increase
Decrease
Increase
Decrease
Exchange
rate
10%
525
(640)
-
-
Cash flow hedges
Fair value hedges
10%
10%
-
7
-
(9)
(2,929)
-
3,580
-
Commodity risk
The risk of fluctuations in the price of energy commodities
respect of the sale of energy on the spot market not hedged
with such contracts is aggregated by uniform risk factors that
is generated by the volatility of prices and structural correla-
can be managed with hedging transactions on the market.
tions between them, which create uncertainty in the margin
Proxy hedging techniques can be used for the industrial port-
on purchases and sales of electricity and fuels at variable pric-
folios when the hedging instruments for the specific risk fac-
es (e.g. indexed bilateral contracts, transactions on the spot
tors generating the exposure are not available on the market
market, etc.).
or are not sufficiently liquid. In addition, Enel uses portfolio
The exposures on indexed contracts are quantified by break-
hedging techniques to assess opportunities for netting inter-
ing down the contracts that generate exposure into the un-
company exposures.
derlying risk factors.
The Group mainly uses plain vanilla derivatives for hedging
To contain the effects of fluctuations and stabilize margins, in
(more specifically, forwards, swaps, options on commodities,
accordance with the policies and operating limits determined
futures, contracts for differences).
by the Group’s governance, Enel develops and plans strate-
Enel also engages in proprietary trading in order to maintain
gies that impact the various phases of the industrial process
a presence in the Group’s reference energy commodity mar-
linked to the production and sale of electricity and gas (such
as forward procurement and long-term commercial agree-
ments), as well as risk mitigation plans and techniques using
derivative contracts (hedging).
kets. These operations consist in taking on exposures in ener-
gy commodities (oil products, gas, coal, CO2 certificates and
electricity) using financial derivatives and physical contracts
traded on regulated and over-the-counter markets, optimizing
As regards electricity sold by the Group, Enel mainly uses
profits through transactions carried out on the basis of ex-
fixed-price contracts in the form of bilateral physical contracts
pected market developments.
(PPAs) and financial contracts (e.g. contracts for differences,
The following table reports the notional amount of outstand-
VPP contracts, etc.) in which differences are paid to the coun-
ing transactions at December 31, 2019 and December 31,
terparty if the market electricity price exceeds the strike price
2018, broken down by type of instrument.
and to Enel in the opposite case. The residual exposure in
Millions of euro
Forward and futures contracts
Swaps
Options
Embedded
Total
For more details, please see note 46 “Derivatives and hedge accounting”.
Notional amount
2019
35,824
5,706
654
68
42,252
2018
41,157
6,346
549
-
48,052
284
Consolidated Annual Report 2019 Sensitivity analysis of commodity risk
fuel scenario and the basket of formulas used in the contracts
The following table presents the results of the analysis of
sensitivity to a reasonably possible change in the commodity
prices underlying the valuation model used in the scenario at
the same date, with all other variables held constant.
The impact on pre-tax profit of shifts of +15% and -15% in
the price curve for the main commodities that make up the
is mainly attributable to the change in the price of electricity,
gas and petroleum products and, to a lesser extent, of CO2.
The impact on equity of the same shifts in the price curve is
primarily due to changes in the price of electricity, petroleum
products and, to a lesser extent, CO2. The Group’s exposure
to changes in the prices of other commodities is not material.
Millions of euro
2019
Change in the fair value of trading derivatives on
commodities
Change in the fair value of derivatives on commodities
designated as hedging instruments
Commodi-
ty price
15%
15%
Pre-tax impact on profit or loss
Pre-tax impact on equity
Increase
Decrease
Increase
Decrease
(18)
-
79
-
-
32
-
(29)
Credit risk
The Group’s commercial, commodity and financial operations
of uniform criteria – in all the main Regions/Countries/Global
Business Lines and at the consolidated level – in measuring
expose it to credit risk, i.e. the possibility that a deterioration
commercial credit exposures in order to promptly identify any
in the creditworthiness of a counterparty that has an adverse
deterioration in the quality of outstanding receivables and any
impact on the expected value of the creditor position or, for
mitigation actions to be taken.
trade payables only, increase average collection times.
The policy for managing credit risk associated with commer-
Accordingly, the exposure to credit risk is attributable to the
cial activities provides for a preliminary assessment of the
following types of operations:
creditworthiness of counterparties and the adoption of miti-
> the sale and distribution of electricity and gas in free and
gation instruments, such as obtaining collateral or unsecured
regulated markets and the supply of goods and services
guarantees.
(trade receivables);
In addition, the Group undertakes transactions to assign re-
> trading activities that involve the physical exchange of as-
ceivables without recourse, which results in the complete
sets or transactions in financial instruments (the commod-
derecognition of the corresponding assets involved in the
ity portfolio);
assignment, as the risks and rewards associated with them
> trading in derivatives, bank deposits and, more generally,
have been transferred.
financial instruments (the financial portfolio).
Finally, with regard to financial and commodity transactions,
In order to minimize credit risk, credit exposures are managed
risk mitigation is pursued with a uniform system for assessing
at the Region/Country/Global Business Line level by different
counterparties at the Group level, including implementation
units, thereby ensuring the necessary segregation of risk
at the level of Regions/Countries/Global Business Lines, as
management and control activities. Monitoring the consoli-
well as with the adoption of specific standardized contractual
dated exposure is carried out by Enel SpA.
frameworks that contain risk mitigation clauses (e.g. netting
In addition, at the Group level the policy provides for the use
arrangements) and possibly the exchange of cash collateral.
285
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Financial receivables
Millions of euro
Staging
Performing
Underperforming
Non-performing
Total
at Dec. 31, 2019
Basis for
recognition of
expected loss
allowance
Avg
loss rate
(PD*LGD)
12 m ECL
1.2%
Lifetime ECL
41.8%
Lifetime ECL
34.9%
Gross
carrying
amount
6,691
110
307
7,108
Expected loss
allowance
Net value
78
46
107
231
6,613
64
200
6,877
Contract assets, trade receivables and other receivables: individual measurement
at Dec. 31, 2019
Avg loss rate
(PD*LGD)
Gross carrying
amount
Expected loss
allowance
Net value
0.2%
640
1.2%
4,872
1.5%
1.4%
3.1%
11.5%
7.4%
22.1%
65.2%
20.6%
100.0%
-
-
-
-
-
-
410
218
130
52
54
398
1,177
7,311
228
97
-
-
-
-
3
4
1
58
6
3
4
6
4
88
767
936
47
97
-
-
-
-
3
4
639
4,814
404
215
126
46
50
310
410
6,375
181
-
-
-
-
-
-
-
332
8,283
151
1,088
181
7,195
Millions of euro
Contract assets
Trade receivables
Trade receivables not past due
Trade receivables past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total trade receivables
Other receivables
Other receivables not past due
Other receivables past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total other receivables
TOTAL
286
Consolidated Annual Report 2019 Contract assets, trade receivables and other receivables: collective measurement
Millions of euro
Contract assets
Trade receivables
Trade receivables not past due
Trade receivables past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total trade receivables
Other receivables
Other receivables not past due
Other receivables past due:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
- 121-150 days
- 151-180 days
- more than 180 days (credit impaired)
Total other receivables
TOTAL
Avg loss rate (PD*LGD)
Gross carrying amount Expected loss allowance
at Dec. 31, 2019
6.7%
0.8%
2.2%
11.7%
18.7%
24.5%
28.8%
37.9%
61.1%
1.5%
-
-
-
-
-
-
-
15
3,455
1,660
197
139
98
80
103
3,020
8,752
521
911
3
21
2
5
8
2
1,473
10,240
1
29
36
23
26
24
23
39
1,844
2,044
8
-
-
-
-
-
-
-
8
2,053
Net value
14
3,426
1,624
174
113
74
57
64
1,176
6,708
513
911
3
21
2
5
8
2
1,465
8,187
Liquidity risk
Liquidity risk manifests itself as uncertainty about the Group’s
ding liquidity on hand and short-term deposits, available com-
mitted credit lines and a portfolio of highly liquid assets.
ability to discharge its obligations associated with financial lia-
In the long term, liquidity risk is mitigated by maintaining a
bilities that are settled by delivering cash or another financial
balanced maturity profile for our debt, access to a range of
asset.
sources of funding on different markets, in different curren-
Enel manages liquidity risk by implementing measures to
cies and with diverse counterparties.
ensure an appropriate level of liquid financial resources, mi-
The mitigation of liquidity risk enables the Group to maintain
nimizing the associated opportunity cost and maintaining a
a credit rating that ensures access to the capital market and
balanced debt structure in terms of its maturity profile and
limits the cost of funds, with a positive impact on its perfor-
funding sources.
mance and financial position.
In the short term, liquidity risk is mitigated by maintaining an
appropriate level of unconditionally available resources, inclu-
The Group holds the following undrawn lines of credit:
287
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Millions of euro
at Dec. 31, 2019
at Dec. 31, 2018
Committed credit lines
Uncommitted credit lines
Commercial paper
Total
Maturity analysis
Expiring within
one year
Expiring beyond
one year
Expiring within
one year
Expiring beyond
one year
215
927
9,627
10,769
15,461
-
-
15,461
750
355
6,990
8,095
13,758
-
-
13,758
The table below summarizes the maturity profile of the Group’s long-term debt.
Millions of euro
Maturing in
Less than
3 months
From 3
months to
1 year
2021
2022
2023
2024
Beyond
992
-
-
-
629
258
-
27
1,385
2,283
329
-
111
518
1,825
97
2,911
703
2,217
97
4,919
13,474
486
1,328
97
1,194
8,989
331
992
914
1,825
4,723
5,928
6,830
23,988
3
82
-
85
67
6
73
27
3
30
276
760
-
149
1,285
-
1,036
1,434
190
12
202
65
12
77
229
18
247
71
23
94
197
637
68
902
430
15
445
117
15
132
33
702
-
735
126
14
140
137
8
145
35
722
-
757
99
14
113
30
-
30
200
4,377
2
4,579
715
29
744
375
8
383
1,180
2,229
3,600
6,202
6,948
7,730
29,694
Bonds:
- listed, fixed rate
- listed, floating rate
- unlisted, fixed rate
- unlisted, floating rate
Total bonds
Bank borrowings:
- fixed rate
- floating rate
- use of revolving credit lines
Total bank borrowings
Leases:
- fixed rate
- floating rate
Total leases
Other non-bank borrowings:
- fixed rate
- floating rate
Total other non-bank borrowings
TOTAL
288
Consolidated Annual Report 2019 Commitments to purchase
commodities
In conducting its business, the Enel Group has entered into
contracts to purchase specified quantities of commodities at
a certain future date for its own use, which qualify for the own
use exemption provided for under IFRS 9.
The following table reports the undiscounted cash flows asso-
ciated with outstanding commitments at December 31, 2019.
Millions of euro
Commitments to purchase commodities:
at Dec. 31, 2019
2016-2020
2021-2025
2026-2030
Beyond
- electricity
- fuels
Total
97,472
48,016
145,488
26,667
26,986
53,653
22,603
13,010
35,613
17,041
6,119
23,160
31,161
1,901
33,062
45. Offsetting financial assets and financial liabilities
At December 31, 2019, the Group did not hold offset positions in assets and liabilities, as it is not the Enel Group’s policy to
settle financial assets and liabilities on a net basis.
289
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 46. Derivatives and hedge accounting
The following tables show the notional amount and the fair
The notional amount of a derivative contract is the amount on
value of derivative financial assets and derivative financial lia-
the basis of which cash flows are exchanged. This amount can
bilities eligible for hedge accounting or measured a FVTPL,
be expressed as a value or a quantity (for example tons, con-
classified on the basis of the type of hedge relationship and
verted into euros by multiplying the notional amount by the
the hedged risk, broken down into current and non-current
agreed price). Amounts denominated in currencies other than
instruments.
the euro are converted at the official end-year exchange rates
provided by the World Markets Reuters (WMR) Company.
Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
DERIVATIVE ASSETS
Fair value hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
Cash flow hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
12
166
-
178
335
11,705
1,628
13,668
50
-
322
372
12
171
-
183
404
8,318
1,126
9,848
50
197
261
508
7
25
-
32
26
1,081
215
1,322
2
-
27
29
6
19
-
25
12
675
262
949
2
4
25
31
TOTAL DERIVATIVE ASSETS
14,218
10,539
1,383
1,005
-
-
-
-
133
2,717
3,081
5,931
-
3,399
17,203
20,602
26,533
15
66
-
81
427
4,689
1,428
6,544
-
4,057
20,553
24,610
31,235
-
-
-
-
-
132
847
979
-
34
3,052
3,086
4,065
1
3
-
4
1
252
494
747
-
51
3,112
3,163
3,914
Millions of euro
Non-current
Current
Notional
Fair value
Notional
Fair value
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
5
5
7,704
11,049
601
19,354
62
2
154
218
19,577
-
-
8,605
13,025
656
22,286
478
191
133
802
23,088
1
1
779
1,560
47
2,386
6
-
14
20
2,407
-
-
605
1,803
167
2,575
17
3
14
34
2,609
-
-
65
2,573
1,613
4,251
100
1,679
17,650
19,429
23,680
-
-
272
2,791
2,050
5,113
138
3,101
21,845
25,084
30,197
-
-
1
115
457
573
79
38
2,864
2,981
3,554
-
-
1
348
859
1,208
66
33
3,036
3,135
4,343
DERIVATIVE LIABILITIES
Fair value hedge derivatives:
- on exchange rates
Total
Cash flow hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
Total
TOTAL DERIVATIVE LIABILITIES
290
Consolidated Annual Report 2019 46.1 Derivatives designated as hedging
instruments
Derivatives are initially recognized at fair value, on the trade
date of the contract and are subsequently re-measured at
their fair value. The method of recognizing the resulting gain
or loss depends on whether the derivative is designated as
a hedging instrument, and if so, the nature of the item being
relationship will be provided through a qualitative analysis;
> on the other hand, if the underling risk of the hedging in-
strument and the hedged item is not the same, the exist-
ence of the economic relationship will be demonstrated
through a quantitative method in addition to a qualitative
analysis of the nature of the economic relationship (i.e.,
linear regression).
hedged.
Hedge accounting is applied to derivatives entered into in
order to reduce risks such as interest rate risk, foreign ex-
change rate risk, commodity price risk and net investments
in foreign operations when all the criteria provided by IFRS 9
are met.
At the inception of the transaction, the Group documents
the relationship between hedging instruments and hedged
items, as well as its risk management objectives and strate-
gy. The Group also documents its assessment, both at hedge
inception and on an ongoing basis, of whether hedging in-
struments are highly effective in offsetting changes in fair
values or cash flows of hedged items.
For cash flow hedges of forecast transactions designated as
hedged items, the Group assesses and documents that they
are highly probable and present an exposure to changes in
cash flows that affect profit or loss.
In order to demonstrate that the behavior of the hedging in-
strument is in line with those of the hedged item, different
scenarios will be analyzed.
For hedging of commodity price risk, the existence of an eco-
nomic relationship is deduced from a ranking matrix that de-
fines, for each possible risk component a set of all standard
derivatives available in the market whose ranking is based on
their effectiveness in hedging the considered risk.
In order to evaluate the credit risk effects, the Group con-
siders the existence of risk mitigating measures (collateral,
mutual break-up clauses, netting agreements, etc.).
The Group has established a hedge ratio of 1:1 for all the
hedging relationships (including commodity price risk hedg-
ing) as the underlying risk of the hedging derivative is identi-
cal to the hedged risk, in order to minimize hedging ineffec-
Depending on the nature of the risks exposure, the Group
tiveness.
designates derivatives as either:
> fair value hedges; or
> cash flow hedges.
For more details about the nature and the extent of risks
arising from financial instruments to which the Group is ex-
posed, please refer the note 44 “Risk management”.
To be effective a hedging relationship shall meet all of the
following criteria:
The hedge ineffectiveness will be evaluated through a quali-
tative assessment or a quantitative computation, depending
on the following circumstances:
> if the critical terms of the hedged item and hedging instru-
ment match and there aren’t other sources of ineffective-
ness included the credit risk adjustment on the hedging
derivative, the hedge relationship will be considered fully
effective on the basis of a qualitative assessment;
> existence of an economic relationship between hedging
> if the critical terms of the hedged item and hedging instru-
instrument and hedged item;
> the effect of credit risk does not dominate the value
changes resulting from the economic relationship;
> the hedge ratio defined at initial designation shall be equal
to the one used for risk management purposes (i.e. same
quantity of the hedged item that the entity actually hedges
and the quantity of the hedging instrument that the entity
actually uses to hedge the quantity of the hedged item).
ment do not match or there is at least one source of in-
effectiveness, the hedge ineffectiveness will be quantified
applying the dollar offset cumulative method with hypo-
thetical derivative. This method compares changes in fair
values of the hedging instrument and the hypothetical de-
rivative between the reporting date and the inception date.
The main causes of hedge ineffectiveness can be the fol-
Based on the IFRS 9 requirements, the existence of an eco-
lowings:
nomic relationship is evaluated by the Group through a quali-
tative assessment or a quantitative computation, depending
of the following circumstances:
> if the underlying risk of the hedging instrument and the
hedged item is the same, the existence of an economic
> basis differences (i.e. the fair value or cash flows of the
hedged item depend on a variable that is different from
the variable that causes the fair value or cash flows of the
hedging instrument to change);
> timing differences (i.e. the hedged item and hedging in-
291
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements strument occur or are settled at different dates);
(i.e., “basis adjustment”).
> quantity or notional amount differences (i.e. the hedged
When a hedging instrument expires or is sold, or when a
item and hedging instrument are based on different quan-
hedge no longer meets the criteria for hedge accounting, any
tities or notional amounts);
cumulative gain or loss existing in equity at that time remains
> other risks (i.e. changes in the fair value or cash flows of
in equity and is recognized when the forecast transaction is
a derivative hedging instrument or hedged item relate to
ultimately recognized in the income statement. When a fore-
risks other than the specific risk being hedged);
cast transaction is no longer expected to occur, the cumula-
> credit risk (i.e. the counterparty credit risk differently im-
tive gain or loss that was reported in equity is immediately
pact the fair value movements of the hedging instruments
transferred to the income statement.
and hedge items).
For hedging relationships using forward as hedging instru-
ment, where only the change in the value of the spot ele-
Fair value hedges
Fair value hedges are used to protect the Group against expo-
ment is designated as the hedging instrument, accounting
for the forward element (profit or loss vs OCI) is defined case
sures to changes in the fair value of assets, liabilities or firm
by case. This approach is actually applied by the Group for
commitment attributable to a particular risk that could affect
hedging of foreign currency risk on renewables assets.
profit or loss.
Conversely, hedging relationships using cross currency inter-
Changes in fair value of derivatives that qualify and are desig-
est rate swaps as hedging instruments, the Group separates
nated as hedging instruments are recognized in the income
foreign currency basis spread, in designating the hedging de-
statement, together with changes in the fair value of the
rivative, and present them in other comprehensive income
hedged item that are attributable to the hedged risk.
(OCI) as hedging costs.
If the hedge no longer meets the criteria for hedge account-
With specific regard to cash flow hedges of commodity risk,
ing, the adjustment to the carrying amount of a hedged item
in order to improve their consistency with the risk manage-
for which the effective interest rate method is used is amor-
ment strategy, the Enel Group applies a dynamic hedge ac-
tized to profit or loss over the period to maturity.
counting approach based on specific liquidity requirements
(the so-called liquidity-based approach).
Cash flow hedges
Cash flow hedges are applied in order to hedge the Group
This approach requires the designation of hedges through
the use of the most liquid derivatives available on the mar-
exposure to changes in future cash flows that are attribut-
ket and replacing them with others that are more effective in
able to a particular risk associated with a recognized asset
covering the risk in question.
or liability or a highly probable transaction that could affect
Consistent with the risk management strategy, the liquidi-
profit or loss.
ty-based approach allows the roll-over of a derivative by re-
The effective portion of changes in the fair value of deriva-
placing it with a new derivative, not only in the event of expiry
tives that are designated and qualify as cash flow hedges is
but also during the hedging relationship, if and only if the new
recognized in other comprehensive income. The gain or loss
derivative meets both of the following requirements:
relating to the ineffective portion is recognized immediately
> it represents a best proxy of the old derivative in terms of
in the income statement.
ranking;
Amounts accumulated in equity are reclassified to profit
> it meets specific liquidity requirements.
or loss in the periods when the hedged item affects profit
Satisfaction of these requirements is verified quarterly.
or loss (for example, when the hedged forecast sale takes
At the roll-over date, the hedging relationship is not discon-
place).
tinued. Accordingly, starting from that date, changes in the
If the hedged item results in the recognition of a non-financial
effective fair value of the new derivative will be recognized
asset (i.e., property, plant and equipment or inventories, etc.)
in shareholders’ equity (the cash flow hedge reserve), while
or a non-financial liability, or a hedged forecast transaction
changes in the fair value of the old derivative are recognized
for a non-financial asset or a non-financial liability becomes
through profit or loss.
a firm commitment for which fair value hedge accounting is
applied, the amount accumulated in equity (i.e., cash flow re-
serve) shall be removed and included in the initial value (cost
or other carrying amount) of the asset or the liability hedged
292
Consolidated Annual Report 2019 46.1.1 Hedge relationships by type of risk hedged
Interest rate risk
The following table shows the notional amount and the avera-
ge interest rate of instruments hedging the interest rate risk
on transactions outstanding at December 31, 2019 and De-
cember 31, 2018, broken down by maturity.
Millions of euro
Maturity
2020
2021
2022
2023
2024
Beyond
At Dec. 31, 2019
Interest rate swaps
Total notional amount
Notional amount related to IRS in euro
Average IRS rate in euro
Notional amount related to IRS in US dollars
Average IRS rate in US dollars
At Dec. 31, 2018
Interest rate swaps
Total notional amount
Notional amount related to IRS in euro
Average IRS rate in euro
Notional amount related to IRS in US dollars
Average IRS rate in US dollars
199
47
3.1825
134
1.574
140
-
-
134
2.035
499
143
187
187
170
170
7,054
6,042
4.9699
4.0516
4.1629
1.8298
356
3.523
-
-
-
-
665
2.967
2019
2020
2021
2022
2023
Beyond
714
18
199
68
0.5444
2.7151
131
-
-
396
396
697
697
7,598
7,298
2.7098
1.8872
1.9491
87
131
131
1.6208
1.5745
2.0359
-
-
-
-
229
2.7943
The following table shows the notional amount and the fair
transactions outstanding as at December 31, 2019 and De-
value of the hedging instruments on the interest rate risk of
cember 31, 2018, broken down by type of hedged item.
Millions of euro
Hedging instrument
Hedged item
Fair value hedges
Interest rate swaps
Fixed-rate bank borrowings
Cash flow hedges
Interest rate swaps
Floating-rate bonds
Interest rate swaps
Floating-rate financial receivables
Interest rate swaps
Floating-rate non-bank borrowings
Total
Fair value
Notional
amount
Fair value
Notional
amount
Assets
Liabilities
Assets
Liabilities
at Dec. 31, 2019
at Dec. 31, 2018
7
11
15
-
33
-
12
(499)
3,953
-
(281)
(780)
140
4,144
8,249
7
1
7
5
20
-
12
(406)
-
(200)
(606)
6,105
142
3,476
9,735
293
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table shows the notional amount and the fair
ber 31, 2019 and December 31, 2018, broken down by type
value of hedging derivatives on interest rate risk as at Decem-
of hedge.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
Derivatives
Fair value hedges
Interest rate swaps
Total
Cash flow hedges
Interest rate swaps
Total
TOTAL INTEREST RATE
DERIVATIVES
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
12
12
468
468
480
27
27
831
831
858
7
7
26
26
33
7
7
13
13
20
-
-
7,769
7,769
7,769
-
-
8,877
8,877
8,877
-
-
780
780
780
-
-
606
606
606
The notional amount of derivatives classified as hedging in-
notional amount of amortizing interest rate swaps.
struments at December 31, 2019, came to €8,249 million,
The deterioration in the fair value of €161 million mainly
with a corresponding negative fair value of €747 million.
reflects developments in the yield curve.
Compared with December 31, 2018, the notional amount de-
creased by €1,486 million, mainly reflecting:
Fair value hedge derivatives
> the early termination of pre-hedge interest rate swaps
Net gains and losses recognized through profit or loss,
amounting to €750 million in respect of Enel SpA’s “exchan-
reflecting changes in the fair value of fair value hedge derivati-
ge offer” for the repurchase of hybrid bonds expiring Ja-
ves and the changes in the fair value of the hedged item that
nuary 15, 2075 and January 10, 2074;
are attributable to interest rate risk demonstrated that these
> the early termination of pre-hedge interest rate swaps
hedging relationships were totally effective both in 2019 and
amounting to €2,000 million in respect of “sustainable”
the previous year.
bond issues during the year;
> the expiry of interest rate swaps amounting to €714 mil-
The following table shows the impact of fair value hedges of
lion;
interest rate risk in the balance sheet at December 31, 2019
> new interest rate swaps amounting to €1,745 million.
and December 31, 2018.
The value also reflects the reduction of €203 million in the
Millions of euro
2019
2018
Interest rate swaps
12
7
7
27
7
7
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in period
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness in
period
294
Consolidated Annual Report 2019 The following table shows the impact of the hedged item of fair value hedges in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in period
7
(7)
Carrying
amount
20
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in period
7
(7)
Carrying
amount
35
Fixed-rate borrowings
Cash flow hedge derivatives
The following table shows the cash flows expected in coming years from cash flow hedge derivatives on interest rate risk.
Millions of euro
Fair value
Distribution of expected cash flows
at Dec. 31, 2019
2020
2021
2022
2023
2024
Beyond
Cash flow hedge derivatives on interest rates
Positive fair value
Negative fair value
26
1
(1)
(2)
(2)
2
32
(780)
(102)
(121)
(110)
(110)
(94)
(284)
The following table shows the impact of cash flow hedges of interest rate risk in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Interest rate swaps
Notional
amount
8,237
Carrying
amount
(754)
Fair value used
to measure
ineffectiveness
in period
(754)
Notional
amount
9,723
Carrying
amount
(593)
Fair value used
to measure
ineffectiveness
in period
(593)
The following table shows the impact of the hedged item of cash flow hedges in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Fair value used
to measure
ineffectiveness
in period
Cash flow
hedge
reserve
Hedging
costs
reserve
Floating-rate bonds
Floating-rate financial receivables
Floating-rate non-bank borrowings
Total
486
(15)
275
746
(486)
15
(275)
(746)
-
-
-
-
Ineffective
portion of
carrying
amount
of CFH
derivatives
(2)
-
(6)
(8)
Fair value used
to measure
ineffectiveness
in period
Cash flow
hedge
reserve
Hedging
costs
reserve
395
(7)
190
578
(395)
7
(190)
(578)
-
-
-
-
Ineffective
portion of
carrying
amount
of CFH
derivatives
(10)
-
(5)
(15)
295
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table shows the impact of cash flow hedges of interest rate risk through profit or loss and other comprehensive
income in the period, gross of tax effects:
Millions of euro
at Dec. 31, 2019
Interest rate hedges
(121)
7
-
47
Gross changes
in fair value
through OCI
Net gain/(loss) gross of tax
effects through profit or
loss for ineffectiveness
Hedging costs
through OCI
Net gain/(loss) gross
of tax effects through
profit or loss for
reclassification from
OCI
Exchange risk
the instruments hedging exchange risk on transactions out-
The following table reports the maturity profile of the notional
standing at December 31, 2019 and December 31, 2018.
amount and associated average contractual exchange rate for
Millions of euro
At Dec. 31, 2019
Cross currency interest rate swaps (CCIRS)
Notional amount
Notional amount for CCIRS EUR-USD
Average exchange rate EUR/USD
Notional amount for CCIRS EUR-GBP
Average exchange rate EUR/GBP
Notional amount for CCIRS EUR-CHF
Average exchange rate EUR/CHF
Notional amount for CCIRS USD-BRL
Average exchange rate USD/BRL
Currency forwards
Notional amount
Notional amount - currency forward EUR/USD
2,899
958
Average currency forward rate - EUR/USD
1.1774
1.1803
1.1609
Notional amount - currency forward USD/CLP
Average currency forward rate - USD/CLP
Notional amount - currency forward USD/BRL
Average currency forward rate - USD/BRL
Notional amount - currency forward EUR/ZAR
Average currency forward rate - EUR/ZAR
Notional amount - currency forward EUR/RUB
Average currency forward rate - EUR/RUB
296
527
44
678.0443 680.0000
313
14
4.1274
4.1330
221
17.7856
181
74.1277
-
-
-
-
-
-
-
-
-
-
-
-
2020
2021
2022
2023
2024
Beyond
Total
831
1,115
1,781
3,339
3,146
12,511
22,723
-
202
1,781
3,339
1,336
8,904
15,562
1.1348
1.1213
1.2184
1.1039
1.2067
470
587
0.8466
0.8245
92
1.2169
-
-
269
326
3.9273
3.4742
4,459
1,015
-
-
-
-
-
-
18
18
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
999
3,041
5,097
0.8765
0.8062
207
120
419
1.0642
1.2100
-
-
-
-
-
-
-
-
-
-
-
-
-
288
883
3.5655
5,492
3,875
571
327
221
181
-
-
-
-
-
-
-
-
-
-
-
Consolidated Annual Report 2019 Millions of euro
At Dec. 31, 2018
Cross currency interest rate swaps (CCIRS)
2019
2020
2021
2022
2023 Beyond
Total
Notional amount
2,474
855
934
1,746
3,274
13,149
22,432
-
-
-
-
198
1,746
3,274
8,729
13,947
1.1348
1.1213
1.2184
1.1726
Notional amount for CCIRS EUR-USD
Average exchange rate EUR/USD
Notional amount for CCIRS EUR-GBP
Average exchange rate EUR/GBP
Notional amount for CCIRS EUR-CHF
Average exchange rate EUR/CHF
Notional amount for CCIRS USD-BRL
Average exchange rate USD/BRL
Currency forwards
Notional amount
1,229
447
559
0.6753
0.8466
0.8245
-
-
89
1.2170
-
-
528
319
177
3.5679
3.5508
3.2948
5,070
1,512
44
44
Notional amount - currency forward EUR/USD
3,071
1,343
Average currency forward rate - EUR/USD
1.2014
1.2199
1.2392
Notional amount - currency forward USD/CLP
Average currency forward rate - USD/CLP
Notional amount - currency forward USD/BRL
Average currency forward rate - USD/BRL
Notional amount - currency forward EUR/ZAR
Average currency forward rate - EUR/ZAR
Notional amount - currency forward EUR/RUB
Average currency forward rate - EUR/RUB
838
92
667.5891 667.5175
409
3.6958
-
-
220
77
16.7884 18.0229
139
79.4094
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,846
6,081
0.8261
315
404
1.1133
94
1,118
3.1037
6,626
4,458
930
409
297
139
-
-
-
-
-
-
-
-
-
-
-
297
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table shows the notional amount and the fair
sactions outstanding as at December 31, 2019 and December
value of the hedging instruments on the exchange risk of tran-
31, 2018, broken down by type of hedged item.
Millions of euro
Hedging instrument
Fair value hedges
Cross currency interest rate swaps (CCIRS)
Cross currency interest rate swaps (CCIRS)
Cash flow hedges
Cross currency interest rate swaps (CCIRS)
Cross currency interest rate swaps (CCIRS)
Cross currency interest rate swaps (CCIRS)
Cross currency interest rate swaps (CCIRS)
Cross currency interest rate swaps (CCIRS)
Currency forwards
Currency forwards
Currency forwards
Total
Fair value
Notional
amount
Fair value
Notional
amount
Hedged item
Assets
Liabilities
Assets
Liabilities
at Dec. 31, 2019
at Dec. 31, 2018
Fixed-rate borrowings
in foreign currencies
Floating-rate
borrowings in foreign
currencies
Floating-rate
borrowings in foreign
currencies
Fixed-rate borrowings
in foreign currencies
Floating-rate Bond in
foreign currencies
Fixed-rate Bond in
foreign currencies
Future cash flows
denominated in
foreign currencies
Future cash flows
denominated in
foreign currencies
Future commodity
purchases
denominated in
foreign currencies
Purchases of
investment goods and
other
24
-
55
-
6
(1)
-
(5)
(4)
(1)
171
-
999
72
302
7
15
37
85
47
-
-
(4)
(2)
-
87
150
525
793
346
1,022
(1,535)
20,877
598
(2,013)
20,234
-
3
(17)
302
(63)
811
-
4
(71)
297
(33)
1,089
124
(7)
3,462
114
(15)
4,298
3
(43)
1,219
42
(12)
1,241
1,237
(1,676)
28,215
949
(2,150)
29,060
Cash flow hedges and fair value hedges include:
flows in currencies other than the euro, with a positive fair
> CCIRSs with a notional amount of €21,120 million used to
value of €57 million;
hedge the exchange risk on fixed-rate debt denominated in
> currency forwards with a notional amount of €1,219 million
currencies other than the euro, with a negative fair value
and a negative fair value of €40 million in respect of OTC
of €495 million;
transactions to mitigate the exchange risk on expected
> CCIRSs with a notional amount of €1,603 million used to
cash flows in currencies other than the currency of ac-
hedge the exchange risk on floating-rate debt denomina-
count connected with the purchase of investment goods
ted in currencies other than the euro, with a positive fair
in the renewables and infrastructure and networks sectors
value of €38 million;
(new generation digital meters), on operating expenses for
> currency forwards with a notional amount of €4,273 million
the supply of cloud services and on revenue from the sale
used to hedge the exchange risk associated with purcha-
of renewable energy.
ses of natural gas, purchases of fuel and expected cash
298
Consolidated Annual Report 2019 The following table reports the notional amount and fair value of foreign exchange derivatives at December 31, 2019 and De-
cember 31, 2018, broken down by type of hedge.
Millions of euro
Derivatives
Fair value hedges
Currency forwards
CCIRS
Total
Cash flow hedges
Currency forwards
CCIRS
Total
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
-
166
166
-
237
237
-
25
25
3,253
11,169
14,422
4,302
8,705
13,007
130
1,083
1,213
-
22
22
160
767
927
-
5
5
-
-
-
-
(1)
(1)
-
-
-
2,238
11,384
13,622
2,326
(113)
(61)
13,490
(1,562)
(2,090)
15,816
(1,675)
(2,151)
TOTAL EXCHANGE RATE DERIVATIVES
14,588
13,244
1,238
949
13,627
15,816
(1,676)
(2,151)
The notional amount of CCIRSs at December 31, 2019
exchange risk, especially that associated with the US dollar,
amounted to €22,723 million (€22,432 million at December
is mainly due to purchases of natural gas, purchase of fuel
31, 2018), an increase of €291 million. Cross currency interest
and cash flows in respect of investments. Changes in the no-
rate swaps with a total value of €2,070 million expired, while
tional amount are connected with normal developments in
new derivatives amounted to €2,510 million, of which €1,336
operations.
million in respect of bond issues denominated in US dollars
in September 2019. The value also reflects developments in
Fair value hedge derivatives
the exchange rate of the euro against the main other curren-
The following table reports net gains and losses recognized
cies, which caused their notional amount to increase by €466
through profit or loss, reflecting changes in the fair value of
million.
fair value hedge derivatives and the changes in the fair value
The notional amount of currency forwards at December 31,
of the hedged item that are attributable to exchange risk for
2019 amounted to €5,491 million (€6,628 million at Decem-
2019 and the previous year.
ber 31, 2018), a decrease of €1,137 million. The exposure to
Millions of euro
Interest rate hedging instruments
Hedged item
Ineffective portion
2019
2018
Net gain/(loss)
Net gain/(loss)
1
(4)
(3)
6
(6)
-
The following table shows the impact of fair value hedges of interest rate risk in the balance sheet at December 31, 2019 and
December 31, 2018:
Millions of euro
2019
2018
Cross currency interest rate swaps (CCIRS)
171
24
24
237
22
22
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in period
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in period
299
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table shows the impact of the hedged item of fair value hedges in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Cumulative
adjustment of fair
value of hedged
item
Fair value used
to measure
ineffectiveness
in period
Carrying
amount
Cumulative
adjustment of
fair value of
hedged item
Fair value used
to measure
ineffectiveness
in period
Carrying
amount
Cross currency interest rate swaps (CCIRS)
171
21
(22)
228
22
(22)
Cash flow hedge derivatives
The following table shows the cash flows expected in coming years from cash flow hedge derivatives on exchange risk.
Millions of euro
Fair value
Distribution of expected cash flows
at Dec. 31, 2019
2020
2021
2022
2023
2024
Beyond
Cash flow hedge derivatives on exchange rates
Positive fair value
Negative fair value
1,213
(1,675)
357
(43)
272
42
219
47
471
33
141
36
1,667
(66)
The following table shows the impact of cash flow hedges of exchange risk in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Cross currency interest rate swaps (CCIRS)
Currency forwards
Total
Notional
amount
Carrying
amount
22,552
(479)
5,491
17
28,043
(462)
Fair value used
to measure
ineffectiveness in
period
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in period
(345)
22,195
(1,323)
52
6,628
99
(293)
28,823
(1,224)
(1,074)
136
(938)
300
Consolidated Annual Report 2019 The following table shows the impact of the hedged item of cash flow hedges in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Fair value used
to measure
ineffectiveness
in period
Cash
flow
hedge
reserve
Hedging
costs
reserve
Ineffective
portion of
carrying
amount
of CFH
derivatives
Fair value used
to measure
ineffectiveness
in period
Cash flow
hedge
reserve
Hedging
costs
reserve
Ineffective
portion of
carrying
amount of CFH
derivatives
(49)
3
(5)
49
(3)
5
1
(1)
-
378
(378)
(135)
17
59
(119)
(17)
(59)
119
-
(1)
-
9
(9)
(32)
293
(293)
(168)
-
-
-
-
-
-
(2)
1
(1)
(32)
(87)
(47)
32
87
47
1
(4)
-
1,169
(1,169)
(246)
71
30
(100)
(66)
938
(71)
(30)
100
-
1
-
66
(36)
(938)
(284)
-
-
-
-
-
-
(1)
(1)
(2)
Floating-rate borrowings in foreign
currencies
Fixed-rate borrowings in foreign
currencies
Floating-rate bonds in foreign
currencies
Fixed-rate bonds in foreign
currencies
Future cash flows denominated in
foreign currencies
Future cash flows denominated in
foreign currencies
Future commodity purchases
denominated in foreign currencies
Purchases of investment goods and
other
Total
The following table shows the impact of cash flow hedges of exchange risk through profit or loss and other comprehensive
income in the period, gross of tax effects.
Millions of euro
at Dec. 31, 2019
Exchange rate hedges
834
1
116
189
Net gain/(loss)
gross of tax
effects through
profit or loss for
ineffectiveness
Gross changes
in fair value
through OCI
Hedging costs
through OCI
Net gain/(loss)
gross of tax
effects through
profit or loss for
reclassification
from OCI
301
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Commodity risk
outstanding at December 31, 2019 and December 31, 2018,
The following table reports the notional amount and average
broken down by expiry.
price of instruments hedging commodity risk for transactions
Millions of euro
At Dec. 31, 2019
Commodity swaps
Notional value on power
Average commodity swap price on power (€/MWh)
Notional value on coal/shipping
Average commodity swap price on coal/shipping ($/ton)
Notional value on gas
Average commodity swap price on gas (€/MWh)
Commodity forwards/futures
Notional value on power
Average commodity forward/future price on power (€/MWh)
Notional value on gas
Average commodity forward/future price on gas (€/MWh)
Notional value on CO2
Average commodity forward/future price on CO2 (€/ton)
Notional value on oil
Average commodity forward/future price on oil ($/bbl)
Millions of euro
At Dec. 31, 2018
Commodity swaps
Notional value on power
Average commodity swap price on power (€/MWh)
Notional value on coal/shipping
Average commodity swap price on coal/shipping ($/ton)
Commodity forwards/futures
Notional value on power
Average commodity forward/future price on power (€/MWh)
Notional value on gas
Average commodity forward/future price on gas (€/MWh)
Notional value on CO2
Average commodity forward/future price on CO2 (€/ton)
Notional value on oil
Average commodity forward/future price on oil ($/bbl)
2020
2021
2022
2023
2024
Beyond
Total
703
47.7
253
62.4
13
3.0
726
50.5
1,869
15.9
217
18.0
988
64.8
123
20.5
-
-
13
3.0
2
50.4
662
19.1
9
25.0
115
59.7
121
20.2
-
-
13
3.0
-
-
1
17.2
-
-
-
-
135
20.2
-
-
13
3.0
-
-
-
-
-
-
-
-
128
20.2
-
-
41
7.0
-
-
-
-
-
-
-
-
1,922
253
159
728
2,532
226
1,103
712
20.7
-
-
66
7.9
-
-
-
-
-
-
-
-
2019
2020
2021
2022
2023
Beyond
Total
765
52.8
582
85.0
436
61.1
352
24.1
213
13.4
1,170
71.4
234
44.2
47
78.9
16
54.4
390
20.0
67
7.8
226
68.8
90
19.4
82
19.0
96
19.0
494
19.0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,761
629
452
742
280
1,396
302
Consolidated Annual Report 2019 The following table reports the notional amount and fair va-
outstanding at December 31, 2019 and December 31, 2018,
lue of instruments hedging interest rate risk on transactions
broken down by type of commodity.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
Derivatives
Cash flow hedges
Derivatives on power:
- swaps
- forwards/futures
- options
1,301
1,249
280
-
293
-
Total derivatives on power
1,581
1,542
234
34
-
268
7
-
-
7
9
694
-
703
-
84
-
84
139
20
-
159
74
-
-
74
-
222
-
222
-
301
-
301
756
621
448
-
1,069
512
159
-
671
(107)
(44)
-
(227)
(12)
-
(151)
(239)
253
619
(54)
(94)
-
-
-
-
-
-
-
-
253
619
(54)
(94)
80
812
-
892
-
-
-
-
-
1,415
-
(1)
(298)
-
-
(693)
-
1,415
(299)
(693)
-
1
-
1
-
-
-
-
-
-
-
-
2,214
2,706
(504)
(1,026)
-
-
-
-
79
2,823
-
2,902
-
226
-
226
10
-
-
10
-
723
-
723
-
279
-
279
4,709
2,554
1,062
Derivatives on coal/shipping:
- swaps
- forwards/futures
- options
Total derivatives on coal/shipping
Derivatives on gas and oil:
- swaps
- forwards/futures
- options
Total derivatives on gas and oil
Derivatives on CO2:
- swaps
- forwards/futures
- options
Total derivatives on CO2
TOTAL DERIVATIVES ON
COMMODITIES
The table reports the notional amount and fair value of deri-
both purchases and sales, carried out for oil commodities and
vatives hedging the price risk on commodities at December
gas products with physical delivery (all-in-one hedges).
31, 2019 and at December 31, 2018, broken down by type of
Cash flow hedge derivatives on commodities included in lia-
hedge.
bilities regard derivatives on gas and oil commodities in the
The positive fair value of cash flow hedge derivatives on com-
amount of €299 million, derivatives on power in the amount
modities regards derivatives on gas and oil commodities in
the amount of €703 million, derivatives on CO2 (€84 million),
derivatives on power (€268 million) and, to a lesser extent,
of €151 million and derivatives on coal (€54 million).
Cash flow hedge derivatives
hedges of coal purchases requested by the generation com-
The following table shows the cash flows expected in coming
panies in the amount of €7 million. The first category primarily
years from cash flow hedge derivatives on commodity risk.
regards hedges of fluctuations in the price of natural gas, for
Millions of euro
Fair value
Distribution of expected cash flows
Cash flow hedge derivatives on commodities
Positive fair value
Negative fair value
at Dec. 31, 2019
2020
2021
2022
2023
2024
Beyond
1,062
662
(504)
(400)
187
(79)
69
(12)
13
(3)
11
(3)
120
(7)
303
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table shows the impact of cash flow hedges of commodity risk in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Power swaps
Coal/shipping swaps
Gas and oil swaps
Power forwards/futures
Coal/shipping forwards/futures
Gas and oil forwards/futures
CO2 forwards/futures
Total
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness
in period
Notional
amount
Carrying
amount
Fair value used
to measure
ineffectiveness in
period
1,922
253
159
728
-
3,635
226
6,923
127
(47)
8
(10)
-
396
84
558
127
(47)
8
(10)
-
396
84
558
1,761
629
-
452
-
2,138
280
5,260
(88)
(20)
-
8
-
(471)
301
(270)
(88)
(20)
-
8
-
(471)
301
(270)
The following table shows the impact of the hedged item of cash flow hedges in the balance sheet at December 31, 2019 and
December 31, 2018.
Millions of euro
2019
2018
Fair value used
to measure
ineffectiveness
in period
Cash flow
hedge
reserve
Hedging
costs
reserve
(110)
47
(404)
(84)
(551)
110
(47)
404
84
551
-
-
-
-
-
Ineffective
portion of
carrying
amount
of CFH
derivatives
7
-
-
-
7
Fair value used
to measure
ineffectiveness in
period
Cash flow
hedge
reserve
Hedging
costs
reserve
82
20
471
(301)
272
(82)
(20)
(471)
301
(272)
-
-
-
-
-
Ineffective
portion of
carrying
amount
of CFH
derivatives
2
-
-
-
2
Future transactions in power
Future transactions in coal/shipping
Future transactions in gas and oil
Future transactions in CO2
Total
The following table shows the impact of cash flow hedges of commodity risk through profit or loss and other comprehensive
income in the period, gross of tax effects.
Millions of euro
at Dec. 31, 2019
Commodity price hedges
914
5
-
91
Net gain/(loss)
gross of tax
effects through
profit or loss for
ineffectiveness
Gross changes
in fair value
through OCI
Hedging costs
through OCI
Net gain/(loss)
gross of tax
effects through
profit or loss for
reclassification
from OCI
304
Consolidated Annual Report 2019 46.2 Derivatives at fair value through
profit or loss
The following table shows the notional amount and the fair
value of derivatives at FVTPL as at December 31, 2019 and
December 31, 2018.
Millions of euro
Notional amount
Fair value assets
Notional amount
Fair value liabilities
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
at Dec. 31,
2019
at Dec. 31,
2018
Derivatives at FVTPL:
- derivatives on interest rates:
- interest rate swaps
- interest rate options
- derivatives on exchange rates:
- currency forwards
- CCIRS
- derivatives on commodities
Derivatives on power:
- swaps
- forwards/futures
- options
Total derivatives on power
Derivatives on coal:
- swaps
- forwards/futures
- options
50
-
50
-
3,399
4,092
-
-
282
5,353
3
5,638
162
-
1,070
6,260
15
7,345
311
201
-
-
-
-
Total derivatives on coal
311
201
Derivatives on gas and oil:
- swaps
- forwards/futures
- options
1,259
9,782
315
896
11,894
225
Total derivatives on gas and oil
11,356
13,015
2
-
34
-
-
25
403
2
430
69
-
-
69
2
-
54
1
-
167
814
28
112
50
1,648
33
-
281
4,329
27
1,009
4,637
566
50
1,175
2,117
-
229
6,955
20
7,204
(80)
(5)
(37)
-
-
(28)
(155)
(14)
(79)
(5)
(18)
(18)
-
(28)
(1,016)
(11)
(197)
(1,055)
56
-
-
56
367
823
(80)
(48)
-
-
-
-
-
-
-
-
367
823
(80)
(48)
168
2,126
247
2,541
215
852
728
(97)
(186)
1,640
11,047
12,712
(2,190)
(1,531)
147
309
289
(273)
(165)
2,002
12,208
13,729
(2,560)
(1,882)
Derivatives on CO2:
- swaps
- forwards/futures
- options
Total derivatives on CO2
Derivatives on other:
- swaps
- forwards/futures
- options
Total derivatives on other
Embedded derivatives
TOTAL DERIVATIVES
-
185
-
185
4
6
-
10
25
-
243
-
243
9
1
-
10
-
-
31
-
31
2
3
-
5
3
-
68
-
68
2
-
-
2
-
-
524
-
524
16
9
-
25
43
-
221
-
221
-
1
-
1
-
-
(32)
-
(32)
(1)
(4)
-
(5)
(4)
-
(65)
-
(65)
-
-
-
-
-
20,974
25,118
3,115
3,194
19,647
25,886
(3,000)
(3,170)
At December 31, 2019 the notional amount of trading deri-
At December 31, 2019, the notional amount of derivatives on
vatives on interest rates came to €212 million. The fair value
exchange rates was €5,080 million. The overall decrease in
of a negative €83 million deteriorated by €1 million on the
their notional value and the decline in the associated net fair
previous year, mainly due to developments in the yield curve.
value of €3 million mainly reflected normal operations and de-
305
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements velopments in exchange rates.
for hedging purposes, did not meet the requirements for he-
At December 31, 2019, the notional amount of derivatives on
dge accounting.
commodities came to €35,329 million. The fair value of tra-
The “other” category includes hedges using weather derivati-
ding derivatives on commodities classified as assets mainly
ves. In addition to commodity risk, the Group companies are
reflects the market valuation of hedges of gas and oil amoun-
also exposed to changes in volumes associated with weather
ting to €2,541 million and derivatives on power amounting to
conditions (for example, temperature impacts the consump-
€430 million.
tion of gas and power).
The fair value of trading derivatives on commodities classified
Embedded derivatives, which are held by Enel Green Power
as liabilities mainly regards hedges of gas and oil amounting
North America, regard supplementary financial clauses in
to €2,560 million and derivatives on power amounting to €197
more complex tax equity partnership agreements, which are
million.
used to finance investment in new renewable capacity.
These values include transactions that, although established
306
Consolidated Annual Report 2019 47. Assets measured at fair value
> Level 2, where the fair value is determined on basis of in-
puts other than quoted prices included within Level 1 that
The Group determines fair value in accordance with IFRS 13
are observable for the asset or liability, either directly (such
whenever such measurement is required by the internatio-
as prices) or indirectly (derived from prices);
nal accounting standards as a recognition or measurement
> Level 3, where the fair value is determined on the basis of
criterion.
unobservable inputs.
Fair value is defined as the price that would be received to sell
This note also provides detailed disclosures concerning the
an asset or paid to transfer a liability, in an orderly transaction,
valuation techniques and inputs used to perform these me-
between market participants, at the measurement date (i.e.,
asurements.
an exit price).
To that end:
The best proxy of fair value is market price, i.e. the current
> recurring fair value measurements of assets or liabilities
publically available price actually used on a liquid and active
are those required or permitted by the IFRS in the balance
market.
sheet at the close of each period;
The fair value of assets and liabilities is classified in accordan-
> non-recurring fair value measurements are those required
ce with the three-level hierarchy described below, depending
or permitted by the IFRS in the balance sheet in particular
on the inputs and valuation techniques used in determining
circumstances.
their fair value:
For general information or specific disclosures on the accoun-
> Level 1, where the fair value is determined on basis of
ting treatment of these circumstances, please see note 2 “Ac-
quoted prices (unadjusted) in active markets for identical
counting policies and measurement criteria”.
assets or liabilities that the entity can access at the mea-
surement date;
307
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements The following table shows, for each class of assets measu-
of the reporting period and the level in the fair value hierarchy
red at fair value on a recurring or non-recurring basis in the
into which the fair value measurements of those assets are
financial statements, the fair value measurement at the end
classified.
Millions of euro
Non-current assets
Current assets
Notes
Fair value
Level 1
Level 2
Level 3
Fair value
Level 1
Level 2
Level 3
Equity investments in other entities
at FVOCI
Securities at FVOCI
Equity investments in other entities
at FVTPL
Financial assets from service
concession arrangements at FVTPL
Loans and receivables measured at
fair value
Fair value hedge derivatives:
- on interest rates
- on exchange rates
Cash flow hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
Inventories measured at fair value
Assets classified as available for sale
26
26.1, 30.1
26
26
26
46
46
46
46
46
46
46
46
28
33
Contingent consideration
27, 31
64
416
8
2,362
354
7
25
26
1,081
215
2
-
27
-
101
96
4
416
-
-
-
-
-
-
-
29
-
-
4
-
-
-
11
-
-
2,362
49
-
8
-
-
61
-
-
-
61
-
-
-
354
51
51
-
-
-
132
847
-
34
-
-
-
-
288
-
-
7
25
26
1,081
186
2
-
23
-
-
69
-
-
-
-
-
-
-
-
-
101
27
-
-
-
-
-
-
-
-
132
559
-
34
-
-
-
-
-
-
-
-
-
-
-
-
3,052
1,056
1,994
42
-
51
40
-
-
2
-
38
2
-
-
13
The fair value of “equity investments in other entities at FVO-
The fair value of derivative contracts is determined using the
CI” is determined for listed companies on the basis of the
official prices for instruments traded on regulated markets.
quoted price set on the closing date of the year, while that
The fair value of instruments not listed on a regulated market
for unlisted companies is based on a reliable valuation of the
is determined using valuation methods appropriate for each
relevant assets and liabilities.
type of financial instrument and market data as of the close
of the period (such as interest rates, exchange rates, vola-
“Financial service concession arrangements at FVOCI” con-
tility), discounting expected future cash flows on the basis
cern electricity distribution operations in Brazil, mainly by Enel
of the market yield curve and translating amounts in curren-
Distribuição Rio, Enel Distribuição Ceará and Enel Distribuição
cies other than the euro using exchange rates provided by
Goiás and are accounted for in accordance with IFRIC 12. Fair
the World Markets Reuters (WMR) Company. For contracts
value was estimated as the net replacement cost based on
involving commodities, the measurement is conducted using
the most recent rate information available and on the general
prices, where available, for the same instruments on both re-
price index for the Brazilian market.
gulated and unregulated markets.
“Loans and receivables measured at fair value” includes (re-
In accordance with the new international accounting stan-
cognized in level 3) the fair value of the receivable from the di-
dards, in 2013 the Group included a measurement of credit
sposal of Slovak Power Holding of €354 million at December
risk, both of the counterparty (Credit Valuation Adjustment
31, 2019. The fair value is determined on the basis of the price
or CVA) and its own (Debit Valuation Adjustment or DVA), in
formula specified in the contract.
order to adjust the fair value of financial instruments for the
corresponding amount of counterparty risk. More specifically,
308
Consolidated Annual Report 2019
the Group measures CVA/DVA using a Potential Future Expo-
date of the year, including the credit spreads of Enel SpA.
sure valuation technique for the net exposure of the position
The measurement of Enel’s financial derivatives is always
and subsequently allocating the adjustment to the individual
classified as level 1 or 2, as it is based on market inputs.
financial instruments that make up the overall portfolio. All
The only exception regards derivatives on weather indices
of the inputs used in this technique are observable on the
(weather derivatives), which are measured using certified
market.
historical data on the underlying variables. For example, an
The notional amount of a derivative contract is the amount on
HDD (“Heating Degree Days”) derivative on a given measure-
which cash flows are exchanged. This amount can be expres-
ment station indicated in the derivative contract is measured
sed as a value or a quantity (for example tons, converted into
at fair value by calculating the difference between the agreed
euros by multiplying the notional amount by the agreed price).
strike and the historical average of the same variable obser-
Amounts denominated in currencies other than the euro are
ved at the same station. The measurement of Enel’s weather
converted into euros at the year-end exchange rates provided
derivatives is classified as level 3.
by the World Markets Reuters (WMR) Company.
The notional amounts of derivatives reported here do not ne-
cessarily represent amounts exchanged between the parties
47.1 Fair value of other assets
For each class of assets not measured at fair value on a re-
and therefore are not a measure of the Group’s credit risk
curring basis but whose fair value must be reported, the fol-
exposure. For listed debt instruments, the fair value is given
lowing table reports the fair value at the end of the period and
by official prices. For unlisted instruments the fair value is de-
the level in the fair value hierarchy into which the fair value
termined using appropriate valuation techniques for each ca-
measurements of those assets are classified.
tegory of financial instrument and market data at the closing
Millions of euro
Non-current assets
Current assets
Notes
Fair value
Level 1
Level 2
Level 3
Fair value
Level 1
Level 2
Level 3
Loans and receivables
Investment property
Inventories
26, 30
19
28
401
154
-
-
22
-
19
-
-
382
132
-
1,418
-
54
-
-
-
1,286
-
-
132
-
54
The table reports the fair value of investment property and in-
by independent experts, who used different methods depen-
ventories of real estate not used in the business in the amount
ding on the specific assets involved.
of €154 million and €54 million respectively. The amounts
The most significant of the items is “loans and receivables”,
were calculated with the assistance of appraisals conducted
which essentially regards e-distribuzione and Enel SpA.
309
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 48. Liabilities measured at fair value
The following table reports for each class of liabilities mea-
of the reporting period and the level in the fair value hierarchy
sured at fair value on a recurring or non-recurring basis in the
into which the fair value measurements are categorized.
financial statements the fair value measurement at the end
Millions of euro
Non-current liabilities
Current liabilities
Notes
Fair value
Level 1
Level 2
Level 3
Fair value
Level 1
Level 2
Level 3
Fair value hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Cash flow hedge derivatives:
- on interest rates
- on exchange rates
- on commodities
Trading derivatives:
- on interest rates
- on exchange rates
- on commodities
46
46
46
46
46
46
46
46
46
Contingent consideration
38, 42
-
1
-
779
1,560
47
6
-
14
53
-
-
-
-
-
7
-
-
3
-
-
1
-
779
1,560
40
6
-
11
5
-
-
-
-
-
-
-
-
48
-
-
-
1
115
457
79
38
2,864
116
-
-
-
-
-
229
-
-
1,047
-
-
-
-
1
115
228
79
38
1,817
103
-
-
-
-
-
-
-
-
-
13
Contingent consideration regards a number of equity invest-
was determined on the basis of the contractual terms and
ments held by the Group in North America, whose fair value
conditions.
48.1 Fair value of other liabilities
For each class of liabilities not measured at fair value in the
the level in the fair value hierarchy into which the fair value
balance sheet but whose fair value must be reported, the fol-
measurements of those liabilities are classified.
lowing table reports the fair value at the end of the period and
Notes
Fair value
Level 1
Level 2
Level 3
43.3.1
43.3.1
43.3.1
43.3.1
43.3.1
43.3.1
46,867
4,408
43,126
165
947
8,712
2,667
183
-
-
-
-
3,741
4,243
947
8,712
2,667
183
63,784
43,291
20,493
-
-
-
-
-
-
-
Millions of euro
Bonds
Fixed rate
Floating rate
Bank borrowings
Fixed rate
Floating rate
Non-bank borrowings
Fixed rate
Floating rate
Total
310
Consolidated Annual Report 2019
49. Related parties
As an operator in the field of generation, distribution, tran-
The table below summarizes the main types of transactions
sport and sale of electricity and the sale of natural gas, Enel
carried out with such counterparties.
carries out transactions with a number of companies directly
or indirectly controlled by the Italian State, the Group’s con-
trolling shareholder.
Related party
Single Buyer
Cassa Depositi e Prestiti Group
ESO - Energy Services Operator
EMO - Energy Markets Operator
Leonardo Group
Relationship
Fully controlled
(indirectly) by the
Ministry for the
Economy and Finance
Directly controlled by
the Ministry for the
Economy and Finance
Fully controlled
(directly) by the
Ministry for the
Economy and Finance
Fully controlled
(indirectly) by the
Ministry for the
Economy and Finance
Directly controlled by
the Ministry for the
Economy and Finance
Nature of main transactions
Purchase of electricity for the enhanced protection market
Sale of electricity on the Ancillary Services Market (Terna)
Sale of electricity transport services (Eni Group)
Purchase of transport, dispatching and metering services
(Terna)
Purchase of postal services (Poste Italiane)
Purchase of fuels for generation plants and natural gas storage
and distribution services (Eni Group)
Sale of subsidized electricity
Payment of A3 component for renewable resource incentives
Sale of electricity on the Power Exchange (EMO)
Purchase of electricity on the Power Exchange for pumping and
plant planning (EMO)
Purchase of IT services and supply of goods
In addition, the Group conducts essentially commercial tran-
determined by the Regulatory Authority for Energy, Networks
sactions with associated companies or companies in which it
and the Environment.
holds minority interests.
Finally, note that within the framework of the Corporate Go-
Finally, Enel also maintains relationships with the pension
vernance rules that the Enel Group has adopted, which are
funds FOPEN and FONDENEL, as well as Fondazione Enel
discussed in detail in the report on corporate governance
and Enel Cuore, an Enel non-profit company devoted to provi-
and ownership structure available on the Company’s websi-
ding social and healthcare assistance.
te (www.enel.com), procedures have been implemented to
All transactions with related parties were carried out on nor-
ensure the transparency and procedural and substantive pro-
mal market terms and conditions, which in some cases are
priety of transactions with related parties.
311
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements
The following tables summarize transactions with related
standing at December 31, 2019 and December 31, 2018 and
parties, associated companies and joint arrangements out-
carried out during the period.
Single Buyer
-
-
-
EMO
1,320
-
-
2,661
3,009
-
3
-
-
54
182
-
-
Cassa Depositi e
Prestiti Group
2,733
1
1
1,372
2,338
4
11
14
ESO
255
5
-
4
4
1
-
1
Other
183
-
-
-
70
-
-
-
Single Buyer
EMO
Cassa Depositi e
Prestiti Group
ESO
Other
personnel
Total at Dec. 31, 2019
arrangements
31, 2019
statements
% of total
Key management
Associates and joint
Overall total at Dec.
Total in financial
-
-
-
-
-
-
-
-
601
-
-
-
-
-
-
-
45
-
-
23
-
-
-
92
-
-
-
250
-
-
-
573
-
-
69
715
2
89
726
-
-
16
354
125
9
-
15
-
-
89
-
-
-
793
-
-
-
-
-
-
-
13
-
-
1
-
6
-
18
-
1
9
164
35
4
Key management
personnel
Associates and joint
Total 2019
arrangements
Overall total 2019
% of total
Total in financial
statements
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,491
6
1
7,046
2,466
190
11
15
646
-
-
-
182
715
8
89
-
1
25
768
160
13
313
10
87
143
151
45
-
31
15
250
8
27
143
1
-
-
61
8
38
5
-
-
-
4,804
16
88
7,189
2,617
235
11
46
15
896
8
27
183
715
151
89
8
39
30
768
160
13
2,230
2,291
77,366
2,961
1,637
33,755
18,580
7,276
(733)
4,518
1,383
13,083
4,065
4,305
3,115
54,174
6,301
3,409
12,960
3,554
1,328
13,161
6.2%
0.5%
5.4%
21.3%
14.1%
3.2%
-1.5%
1.0%
1.1%
6.8%
0.2%
0.6%
5.9%
1.3%
2.4%
2.6%
17.7%
0.2%
2.9%
0.2%
Millions of euro
Income statement
Revenue from sales and services
Other revenue and income
Financial income
Purchases of electricity, gas and
fuel
Costs for services and other
materials
Other operating expenses
Net income/(expense) from
commodity risk management
Financial expense
Millions of euro
Balance sheet
Non-current derivative assets
Trade receivables
Current derivative assets
Other current financial assets
Other current assets
Long-term borrowings
Non-current contract liabilities
Current portion of long-term
borrowings
Trade payables
Current derivative liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
312
Consolidated Annual Report 2019
Millions of euro
Income statement
Revenue from sales and services
Other revenue and income
Financial income
Purchases of electricity, gas and
fuel
materials
Costs for services and other
Other operating expenses
Net income/(expense) from
commodity risk management
Financial expense
Millions of euro
Balance sheet
Non-current derivative assets
Trade receivables
Current derivative assets
Other current financial assets
Other current assets
Long-term borrowings
Non-current contract liabilities
Current portion of long-term
borrowings
Trade payables
Current derivative liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
EMO
1,320
3,009
54
182
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
23
92
250
2,661
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,733
1
1
1,372
2,338
4
11
14
573
69
715
2
89
726
-
-
-
-
-
16
354
125
9
ESO
255
5
-
4
4
1
-
1
-
-
-
-
-
-
-
-
-
-
-
-
15
89
Other
183
70
-
-
-
-
-
-
-
-
-
1
-
6
-
-
1
9
13
164
35
4
601
793
18
Single Buyer
Cassa Depositi e
Prestiti Group
Key management
personnel
Total 2019
Associates and joint
arrangements
Overall total 2019
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
4,491
6
1
7,046
2,466
190
11
15
313
10
87
143
151
45
-
31
4,804
16
88
7,189
2,617
235
11
46
77,366
2,961
1,637
33,755
18,580
7,276
(733)
4,518
6.2%
0.5%
5.4%
21.3%
14.1%
3.2%
-1.5%
1.0%
Single Buyer
EMO
ESO
Other
Cassa Depositi e
Prestiti Group
Key management
personnel
Total at Dec. 31, 2019
Associates and joint
arrangements
Overall total at Dec.
31, 2019
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
646
-
-
182
715
8
89
2,230
-
1
25
768
160
13
1,383
13,083
4,065
4,305
3,115
54,174
6,301
3,409
12,960
3,554
1,328
13,161
15
250
8
27
1
-
143
-
61
8
38
5
-
-
-
15
896
8
27
183
715
151
89
2,291
8
39
30
768
160
13
1.1%
6.8%
0.2%
0.6%
5.9%
1.3%
2.4%
2.6%
17.7%
0.2%
2.9%
0.2%
313
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements
Key management
personnel
Associates and joint
Total 2018
arrangements
Overall total 2018
% of total
Total in financial
statements
Key management
Associates and joint
Overall total at Dec.
Total in financial
personnel
Total at Dec. 31, 2018
arrangements
31, 2018
statements
% of total
192
1,085
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,185
16
1
7,598
2,517
272
1
24
893
-
-
164
804
6
89
-
25
9
736
151
36
2,866
202
22
58
139
127
-
9
31
52
21
1
-
80
58
35
60
-
-
-
-
-
5,387
38
59
7,737
2,644
272
10
55
2,924
52
21
165
804
86
89
35
25
69
736
151
36
73,037
2,538
1,715
37,264
18,406
1,769
532
4,392
13,587
3,914
5,160
2,983
48,983
1,901
3,367
13,387
4,343
1,095
12,107
7.4%
1.5%
3.4%
20.8%
14.4%
15.4%
1.9%
1.3%
8.0%
1.3%
0.4%
5.5%
1.6%
4.5%
2.6%
21.8%
0.8%
2.3%
0.6%
Millions of euro
Income statement
Revenue from sales and services
Other revenue and income
Other financial income
Purchases of electricity, gas and
fuel
Costs for services and other
materials
Other operating expenses
Net income/(expense) from
commodity risk management
Financial expense
Millions of euro
Balance sheet
Trade receivables
Derivative assets
Other current financial assets
Other current assets
Long-term borrowings
Other non-current liabilities
Current portion of long-term
borrowings
Trade payables
Current derivative liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
Single Buyer
-
-
-
EMO
1,952
-
-
3,228
3,234
-
6
-
-
Single Buyer
-
-
-
-
-
-
-
871
-
-
-
-
-
-
52
262
-
-
EMO
120
-
-
8
-
-
-
160
-
-
2
250
-
-
Cassa Depositi e
Prestiti Group
2,622
6
1
1,136
2,299
4
1
16
Cassa Depositi e
Prestiti Group
717
-
-
10
804
-
89
983
-
11
7
354
135
29
ESO
389
7
-
-
3
-
-
8
ESO
20
-
-
146
-
-
-
833
-
-
-
-
-
-
Other
222
3
-
-
163
-
-
-
Other
36
-
-
-
-
6
-
19
-
14
-
132
16
7
In November 2010, the Board of Directors of Enel SpA ap-
implementation of the provisions of Article 2391-bis of the
proved a procedure governing the approval and execution
Italian Civil Code and the implementing regulations issued by
of transactions with related parties carried out by Enel SpA
CONSOB. In 2019, no transactions were carried out for which
directly or through subsidiaries. The procedure (available at
it was necessary to make the disclosures required in the rules
https://www.enel.com/investors/bylaws-rules-and-policies/
on transactions with related parties adopted with CONSOB
transactions-with-related-parties/) sets out rules designed to
Resolution no. 17221 of March 12, 2010, as amended.
ensure the transparency and procedural and substantive pro-
priety of transactions with related parties. It was adopted in
314
Consolidated Annual Report 2019 Millions of euro
Income statement
Revenue from sales and services
Other revenue and income
Other financial income
Purchases of electricity, gas and
fuel
materials
Costs for services and other
Other operating expenses
Net income/(expense) from
commodity risk management
Financial expense
Millions of euro
Balance sheet
Trade receivables
Derivative assets
Other current financial assets
Other current assets
Long-term borrowings
Other non-current liabilities
Current portion of long-term
borrowings
Trade payables
Current derivative liabilities
Current contract liabilities
Other current liabilities
Other information
Guarantees issued
Guarantees received
Commitments
EMO
1,952
3,234
52
262
EMO
120
8
160
2
250
-
-
-
-
-
-
-
-
-
-
-
-
-
2,622
6
1
1,136
2,299
4
1
16
717
-
-
-
-
10
804
89
983
11
7
354
135
29
3,228
6
871
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
ESO
389
7
-
-
-
-
3
8
-
-
-
-
-
-
-
-
-
-
-
ESO
20
146
833
Other
222
3
163
Other
36
6
19
14
132
16
7
-
-
-
-
-
-
-
-
-
-
-
-
Single Buyer
Cassa Depositi e
Prestiti Group
Key management
personnel
Total 2018
Associates and joint
arrangements
Overall total 2018
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
5,185
16
1
7,598
2,517
272
1
24
202
22
58
139
127
-
9
31
5,387
38
59
7,737
2,644
272
10
55
73,037
2,538
1,715
37,264
18,406
1,769
532
4,392
7.4%
1.5%
3.4%
20.8%
14.4%
15.4%
1.9%
1.3%
Single Buyer
Cassa Depositi e
Prestiti Group
Key management
personnel
Total at Dec. 31, 2018
Associates and joint
arrangements
Overall total at Dec.
31, 2018
Total in financial
statements
% of total
-
-
-
-
-
-
-
-
-
-
-
-
-
-
893
-
-
164
804
6
89
2,866
-
25
9
736
151
36
13,587
3,914
5,160
2,983
48,983
1,901
3,367
13,387
4,343
1,095
12,107
192
1,085
52
21
1
-
80
-
58
35
-
60
-
-
-
52
21
165
804
86
89
2,924
35
25
69
736
151
36
8.0%
1.3%
0.4%
5.5%
1.6%
4.5%
2.6%
21.8%
0.8%
2.3%
0.6%
315
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 50. Government grants - Disclosure pursuant
to Article 1, paragraphs 125-129,
of Law 124/2017
Pursuant to Article 1, paragraphs 125-129, of Law 124/2017
The following disclosure includes payments in excess of
as amended, the following provides information on grants
€10,000 made by the same grantor/donor during 2019, even
received from Italian public agencies and bodies, as well as
if made through multiple financial transactions. They are reco-
donations by Enel SpA and the fully consolidated subsidiaries
gnized on a cash basis.
to companies, individuals and public and private entities. The
Pursuant to the provisions of Article 3-quater of Decree Law
disclosure comprises: (i) grants received from Italian public
135 of December 14, 2018, ratified with Law 12 of February
entities/State entities; and (ii) donations made by Enel SpA
11, 2019, for grants received, please refer to the information
and Group subsidiaries to public or private parties resident or
contained in the National Register of State Aid referred to in
established in Italy.
Grants received in millions of euro
Financial institution/
Grantor
Beneficiary
Amount Note
Article 52 of Law 234 of December 24, 2012.
EU - DG Research
Enel X Srl
0.06 Balance of grant for Flexiciency innovation project funded by H2020
EC
Enel X Srl
Emilia-Romagna Region
e-distribuzione SpA
0.28
1.07
Advance on grant at signing of contract for 5G Solution research and innovation
project funded by the EU
Grant received under Decree Law 74/2012 - Funding for urgent measures for
population affected by earthquakes of 20 and May 29, 2012 in Emilia-Romagna
Min. Education,
Universities & Research
(MIUR)
e-distribuzione SpA
0.18
Instalment of grant received for Internet of Energy project, funded under the
Artemis - Joint Undertaking call.
Puglia Region
e-distribuzione SpA
0.02
Marche Region
e-distribuzione SpA
0.09
SIMEST SpA
Enel Green Power SpA
0.3
SIMEST SpA
Enel Green Power SpA
0.42
Instalment of grant received for UCCSM-CLUSTER TECNOLOGICI project, funded
under the DCF 2007-2013 “Cluster Tecnologici Regionali” - support for regional
technology clusters
Grant received under OCDPC no. 437/2017 funding for urgent civil protection
measures in response to exceptional weather events affecting the regions of Lazio,
Marche and Umbria in the 2nd Half of January 2017
Interest rate subsidy on loans for investments in foreign companies in which
SIMEST holds an interest. Project Chucas (Costa Rica), funded under Article 4 of
Law 100/1990
Interest rate subsidy on loans for investments in foreign companies in which
SIMEST holds an interest. Project Talinay (Chile), funded under Article 4 of Law
100/1990
2.42 Total
316
Consolidated Annual Report 2019 0.04 2019 donation
0.04 2019 donation
0.04 2019 donation
0.04 2019 donation
0.03 2019 donation
0.04 2019 donation
Beneficiary
Ashoka Italy Onlus
Amount Notes
0.08 Donation to support sustainable growth
European University Institute
0.1 Donation to support research
Fondazione Centro Studi Enel
0.05 Donation to support research and advanced training
Fondazione Teatro del Maggio Musicale
0.4 2019 donation for cultural projects
Fondazione MAXXI
0.6 2019 donation for cultural projects
Fondazione Accademia Nazionale “Santa
Cecilia”
0.65 2019 donation for cultural projects
Elettrici senza frontiere Onlus
0.04 Donation for development energy
Fondazione Teatro alla Scala
0.6 2019 donation for cultural projects
Stichting Global Reporting Initiative
0.11 2019 donation
Donations made in millions of euro
Donor
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Enel SpA
Fondazione Opes Onlus
Enel Cuore Onlus
Enel Global Trading SpA
Enel Cuore Onlus
Enel Italia SpA
Enel Cuore Onlus
Enel Italia SpA
Enel Cuore Onlus
0.08 Balance of special 2018 donation
Enel Italia SpA
Fondazione Centro Studi Enel
0.04 Balance of 2018 donation
Enel Italia SpA
Fondazione Centro Studi Enel
Enel X Srl
Enel X Srl
Enel Cuore Onlus
Joint Research Lab per la mobilità urbana
0.1 2019 donation for participation in JRL for urban electric mobility
Enel Produzione SpA
Enel Cuore Onlus
0.06 Enel Cuore: 20% of 2019 special donation
Enel Produzione SpA
Enel Cuore Onlus
0.04 Enel Cuore: balance of 2018 special donation
Enel Produzione SpA
Fondazione Centro Studi Enel
0.16 50% of 2019 donation
Enel Produzione SpA
Fondazione Centro Studi Enel
0.03 Balance of 2018 donation
Enel Produzione SpA
Ente Zona Industria di Porto Marghera
0.02 2019 association dues
Enel Produzione SpA
ARTES 4.0
0.01 2019 association dues ARTES 4.0
Enel Produzione SpA
Autorità di Sistema Portuale del Mare
Adriatico Meridionale - Porto di Brindisi
(Faro Porto)
0.03
Enel Produzione contribution to upgrade safety in Port of
Brindisi, thereby supporting the city with an initiative with clear
social and economic benefits
Enel Produzione SpA
Parrocchia Maria Ss. Addolorata di
Tuturano
0.02
Renovation of football field of the Parish of Tuturano (in the
municipality of Brindisi)
Enel Energia SpA
Fondazione Centro studi Enel
0.86 50% advance on 2019 donation
Enel Energia SpA
Fondazione Centro studi Enel
0.8 Balance on special 2018 donation
Enel Energia SpA
Enel Cuore Onlus
0.2 2019 donation for “Fare Scuola Nel Cuore del Punto Enel”
Enel Energia SpA
Enel Cuore Onlus
0.12 Donation for Enelpremia 3.0 ed. 2017/2018 Loyalty
Enel Energia SpA
Enel Cuore Onlus
0,04 2019 donation
e-distribuzione SpA
E.DSO - European Distribution System
Operators
0.11 2019 association dues
e-distribuzione SpA
Enel Cuore Onlus
0.61 20% of 2019 donation
e-distribuzione SpA
Enel Cuore Onlus
2.6 80% balance of 2018 donation
e-distribuzione SpA
Fondazione Centro Studi Enel
1.66 50% 2019 donation
e-distribuzione SpA
Fondazione Centro Studi Enel
1.59 50% balance of 2018 donation
Enel Green Power SpA
Town of Patanna (TP)
0.01 Donation for restoration of artworks
12.05 Total
317
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 51. Contractual commitments and guarantees
The commitments entered into by the Enel Group and the guarantees given to third parties are shown below.
Millions of euro
Guarantees given:
at Dec. 31, 2019
at Dec. 31, 2018
Change
- sureties and other guarantees granted to third parties
11,078
10,310
768
Commitments to suppliers for:
- electricity purchases
- fuel purchases
- various supplies
- tenders
- other
Total
TOTAL
97,472
48,016
1,034
3,522
3,391
153,435
164,513
109,638
43,668
3,122
3,133
3,270
162,831
173,141
(12,166)
4,348
(2,088)
389
121
(9,396)
(8,628)
For more details on the expiry of commitments and guarantees, please see the section “Commitments to purchase commo-
dities” in note 44.
52. Contingent assets and liabilities
The following reports the main contingent assets and liabilities
(and iii) convicted the remaining two defendants, sentencing
at December 31, 2019, which are not recognized in the financial
them with all the allowances provided for by law to nine mon-
statements as they do not meet the requirements provided for
ths’ imprisonment. With regard to payment of damages, the
in IAS 37.
Brindisi Sud thermal generation
plant - Criminal proceedings
against Enel employees
A criminal proceeding was held before the Court of Brindisi
concerning the Brindisi Sud thermal plant. A number of em-
ployees of Enel Produzione – cited as a liable party in civil liti-
gation – have been accused of causing criminal damage and
dumping of hazardous substances with regard to the alleged
contamination of land adjacent to the plant with coal dust as a
result of actions between 1999 and 2011. At the end of 2013,
the accusations were extended to cover 2012 and 2013. As
part of the proceeding, injured parties, including the Province
and City of Brindisi, have submitted claims for total damages
of about €1.4 billion. In its decision of October 26, 2016, the
Court of Brindisi: (i) acquitted nine of the thirteen defendan-
ts (employees/managers of Enel Produzione) for not having
committed the offense; (ii) ruled that it did not have to proce-
ed as the offense was time-barred for two of the defendants;
Court’s ruling also: (i) denied all claims of public parties and
associations acting in the criminal proceeding to recover da-
mages; and (ii) granted most of the claims filed by the priva-
te parties acting to recover damages, referring the latter to
the civil courts for quantification without granting a provisio-
nal award. The convicted employees and the civil defendant,
Enel Produzione, as well as by the employee for whom the
expiry of period of limitations had been declared, appealed
the conviction. On February 8, 2019, the Lecce Court of Ap-
peal: (i) confirmed the trial court ruling regarding the criminal
convictions of two Enel Produzione executives; (ii) denied the
claims for damages of some private appellants; (iii) granted
some claims for damages, which had been denied in the trial
court, referring the parties, like the others – whose claims had
been granted by the trial court – to the civil courts for quantifi-
cation, without granting a provisional award; (iv) confirmed for
the rest the ruling of the Court of Brindisi except for extending
litigation costs to the Province of Brindisi, which had not been
awarded damages at either the trial court or on appeal.
With a subsequent ruling, the Court of Appeal of Lecce gran-
ted the appeal lodged by the Province of Brindisi against the
ruling, acknowledging that a material error had been made
318
Consolidated Annual Report 2019 and therefore recognizing the generic entitlement of the Pro-
petition Authority reached the conclusion that the preliminary
vince to damages. The defendants filed an appeal against ru-
findings did not provide sufficient evidence of any abusive
ling with the Court of Cassation on June 22, 2019.
conduct on the part of Enel Group companies.
Criminal proceedings are also under way before the Courts
SEN, EE and Enel appealed the ruling before the Lazio Regio-
of Reggio Calabria and Vibo Valentia against a number of em-
nal Administrative Court. With judgments issued on October
ployees of Enel Produzione for the offense of illegal waste
17, 2019, the Lazio Regional Administrative Court: (i) partially
disposal in connection with alleged violations concerning the
granted the appeals of EE and SEN concerning the illegiti-
disposal of waste from the Brindisi plant. Enel Produzione has
macy of the determination of the penalty, which it has, as a
not been cited as a liable party for civil damages.
result, voided, ordering the Competition Authority to recalcu-
The criminal proceedings before the Court of Reggio Calabria
late of the sanction on the basis of specific parameters which
ended with the hearing of June 23, 2016. The court acquitted
were defined by the Lazio Regional Administrative Court in
nearly all of the Enel defendants of the main charges becau-
the final rulings, with particular regard to the substantial re-
se no crime was committed. Just one case was dismissed
duction in the period over which the alleged offense was said
under the statute of limitations. Similarly, all of the remaining
to have occurred; and (ii) denied Enel’s appeal relating only to
charges involving minor offenses were dismissed under the
the parental liability attributed to it as the parent company. The
statute of limitations. The proceedings before the Court of
three companies filed an appeal before the Council of State,
Vibo Valentia are still pending and are currently in the testi-
with EE and SEN, in particular, arguing that the reduction in
mony phase, as the court ruled that the offenses could not
the period of the alleged abuse referred to in the judgments
be dismissed under the statute of limitations. At a hearing on
of the Lazio Regional Administrative Court partially granting
February 24, 2020, the Prosecution’s expert witness testified
the appeals was not appropriate, while Enel argued that its
and the proceedings will continue on April 27, 2020.
petition should be granted in full. The Competition Authority
Enel Energia and Servizio Elettrico
Nazionale antitrust proceeding
On May 11, 2017, the Competition Authority announced the
beginning proceedings for alleged abuse of a dominant posi-
tion under Article 102 of the Treaty on the Functioning of the
European Union (TFEU) against Enel SpA (Enel), Enel Energia
SpA (EE) and Servizio Elettrico Nazionale SpA (SEN), alleging,
inter alia, that they had engaged in an exclusionary strategy,
using a series of non-replicable commercial stratagems ca-
pable of hindering their non-integrated competitors to the
benefit of the Group’s company operating on the free market
(EE).
On December 20, 2018 the Competition Authority adopted its
final ruling, subsequently notified to the parties on January 8,
2019, with which it levied a fine on Enel SpA, SEN and EE of
€93,084,790.50, for abuse of a dominant position in violation
of Article 102 of the TFEU.
The disputed conduct consisted in the adoption of an exclu-
sionary strategy through the illegitimate use of the data on
regulated market customers acquired as part of the privacy
consent mechanism for commercial purposes.
With regard to other allegations made with the measure to
initiate the proceeding, concerning the organization and per-
formance of sales activities at physical locations (Enel Points
and Enel Point Partner Shops) and winback policies, the Com-
also filed a cross appeal against the rulings of the Lazio Regio-
nal Administrative Court, asking for restoration of the original
situation.
Pending the preparation and notification of the appeals, on
December 6, 2019, the Competition Authority, with its own
measure notified on December 13, 2019, recalculated the pe-
nalty, reducing it to €27,529,786.46.
SEN, EE and Enel therefore notified the Competition Autho-
rity and filed with the Council of State a petition to suspend
enforcement of the penalty, even in its restated amount, re-
questing the suspension of the related payment until the ap-
peal was decided. At the pre-trial hearing, held on February
20, 2020, this petition was not discussed in consideration of
the supervening action of the Council of State to set a date
for the hearing of the arguments in the dispute and the con-
sequent final decision for May 21, 2020.
BEG litigation
Following an arbitration proceeding initiated by BEG SpA in
Italy, Enelpower obtained a ruling in its favor in 2002, which
was upheld by the Court of Cassation in 2010, which enti-
rely rejected the complaint with regard to alleged breach by
Enelpower of an agreement concerning the construction of
a hydroelectric power station in Albania. Subsequently, BEG,
acting through its subsidiary Albania BEG Ambient, filed suit
against Enelpower and Enel SpA in Albania concerning the
319
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements matter, obtaining a ruling from the District Court of Tirana,
Paris in order to render the ruling of the Albanian court enforce-
upheld by the Albanian Court of Cassation, ordering Enel-
able in France. Enel SpA and Enelpower SpA challenged the suit.
power and Enel to pay tortious damages of about €25 million
Following the beginning of the case before the Tribunal de
for 2004 as well as an unspecified amount of tortious dama-
Grande Instance, again at the initiative of BEG Ambient,
ges for subsequent years. Following the ruling, Albania BEG
between 2012 and 2013 Enel France was served with two
Ambient demanded payment of more than €430 million from
“Saise Conservatoire de Créances” (orders for the precautio-
Enel.
nary attachment of receivables) to conserve any receivables
of Enel SpA in respect of Enel France.
With a ruling of June 16, 2015, the first level was completed
On January 29, 2018, the Tribunal de Grande Instance issued
in the additional suit lodged by Enelpower SpA and Enel SpA
a ruling in favor of Enel and Enelpower, denying Albania BEG
with the Court of Rome asking the Court to ascertain the lia-
Ambient Shpk the recognition and enforcement of the Tira-
bility of BEG SpA for having evaded compliance with the arbi-
na court’s ruling in France for lack of the requirements under
tration ruling issued in Italy in favor of Enelpower SpA through
French law for the purposes of granting exequatur. Among
the legal action taken by Albania BEG Ambient Shpk. With this
other issues, the Tribunal de Grande Instance ruled that: (i)
action, Enelpower SpA and Enel SpA asked the Court to find
the Albanian ruling conflicted with an existing decision, in this
BEG liable and order it to pay damages in the amount that the
case the arbitration ruling of 2002 and that (ii) the fact that
other could be required to pay to Albania BEG Ambient Shpk
BEG sought to obtain in Albania what it was not able to obtain
in the event of the enforcement of the sentence issued by the
in the Italian arbitration proceeding, resubmitting the same
Albanian courts. With the ruling, the Court of Rome found that
claim through Albania BEG Ambient Shpk, represented fraud.
BEG SpA did not have standing to be sued, or alternatively, that
Albania BEG Ambient Shpk appealed the ruling. The hearing
the request was not admissible for lack of an interest for Enel
before the Paris Court of Appeal is scheduled for June 9, 2020
SpA and Enelpower SpA to sue, as the Albanian ruling had not
and briefs are being exchanged between the parties.
yet been declared enforceable in any court. The Court ordered
the setting off of court costs. Enel SpA and Enelpower SpA
appealed the ruling before the Rome Court of Appeal, asking
The Netherlands
At the end of July 2014, Albania BEG Ambient Shpk filed suit
that it be overturned in full. The next hearing, scheduled for No-
with the Court of Amsterdam to render the ruling of the Alba-
vember 13, 2019, was postponed until May 7, 2020.
nian court enforceable in the Netherlands. On June 29, 2016,
the court filed its judgment, which: (i) ruled that the Albanian
On November 5, 2016, Enel SpA and Enelpower SpA filed a
ruling meet the requirements for recognition and enforce-
petition with the Albanian Court of Cassation, asking for the
ment in the Netherlands; (ii) ordered Enel and Enelpower to
ruling issued by the District Court of Tirana on March 24, 2009
pay €433,091,870.00 to Albania BEG Ambient Shpk, in ad-
to be voided. The proceeding is still pending.
dition to costs and ancillary charges of €60,673.78; and (iii)
Proceedings undertaken
by Albania BEG Ambient Shpk
to obtain enforcement of the ruling
of the District Court of Tirana
of March 24, 2009
Albania BEG Ambient Shpk had initiated two proceedings re-
denied Albania BEG Ambient Shpk’s request to declare the
ruling provisionally enforceable.
On June 29, 2016, Enel and Enelpower filed appeals against
the ruling of the Court of Amsterdam issued on the same
date. On September 27, 2016, Albania BEG Ambient also ap-
pealed the court’s ruling of June 29, 2016, to request the re-
versal of its partial loss on the merits. On April 11, 2017, the
questing execution of the Albanian sentence before the cour-
Amsterdam Court of Appeal granted the request of Enel and
ts of the State of New York and Ireland, which both ruled in fa-
Enelpower to join to two pending appeals.
vor of Enel SpA and Enelpower SpA, respectively, on February
In a ruling of July 17, 2018, the Amsterdam Court of Appeal
23 and February 26, 2018. Accordingly, there are no lawsuits
upheld the appeal advanced by Enel and Enelpower, ruling
pending in Ireland or New York State.
that the Albanian judgment cannot be recognized and enfor-
France
In February 2012, Albania BEG Ambient filed suit against Enel
ced in the Netherlands. The Court of Appeal found that the
Albanian decision was arbitrary and manifestly unreasonable
and therefore contrary to Dutch public order. For these rea-
SpA and Enelpower SpA with the Tribunal de Grande Instance in
sons, the court did not consider it necessary to analyze the
320
Consolidated Annual Report 2019 additional arguments of Enel and Enelpower.
gued for the acquittal of the employee of e-distribuzione SpA
The proceeding before the Court of Appeal continued with
(and, consequently, of the company pursuant to Legislative
regard to the subordinate question raised by Albania BEG Am-
Decree 231/2001), which was then confirmed by the acquittal
bient Shpk in the appeal proceedings, with which it is asking
ruling issued by the Court of Milan on January 23, 2020.
the court to rule on the merits of the dispute in Albania and in
particular the alleged non-contractual liability of Enel and Enel-
power in the failure to build the plant in Albania. On Decem-
Environmental incentives - Spain
ber 3, 2019, the Amsterdam Court of Appeal issued a ruling
Following the Decision of the European Commission of No-
in which it quashed the trial court judgment of June 29, 2016,
vember 27, 2017 on the issue of environmental incentives for
rejecting any claim made by Albania BEG Ambient Shpk. The
thermal power plants, the European Commission’s Directora-
Court came to this conclusion after affirming its jurisdiction
te-General for Competition opened an investigation pursuant
over Albania BEG Ambient Shpk’s subordinate claim and re-a-
to Article 108, paragraph 2, of the Treaty on the Functioning
nalyzing the merits of the case under Albanian law. Enel and
of the European Union (TFEU) in order to assess whether the
Enelpower are therefore not liable to pay any amount to Al-
environmental incentive for coal power plants provided for in
bania BEG Ambient Shpk, which was in fact ordered by the
Order ITC/3860/2007 represents State aid compatible with
Court of Appeal to reimburse the appellant companies for the
the internal market. According to a literal interpretation of that
losses incurred in illegitimate conservative seizures, to be
Decision, the Commission reached the preliminary conclu-
quantified as part of a specific procedure, and the costs of
sion that the incentive in question would constitute State aid
the trial and appeal proceedings. On March 3, 2020, it was
pursuant to Article 107, paragraph 1, of the TFEU, expressing
learned that Albania BEG Ambient Shpk had filed an appeal
doubts about the compatibility of the incentive with the in-
with the Supreme Court of the Netherlands.
ternal market while recognizing that the incentives are in line
Luxembourg
In Luxembourg, again at the initiative of Albania BEG Ambient
with the European Union’s environmental policy. On April 13,
2018, Endesa Generación SA, acting as an interested third
party, submitted comments contesting this interpretation,
Shpk, J.P. Morgan Bank Luxembourg SA was also served with
while on July 30, 2018, it was learned that Gas Natural had
an order for the precautionary attachment of any receivables
appealed the decision of the Commission.
of Enel SpA. In parallel Albania BEG Ambient Shpk filed a
claim to obtain enforcement of the ruling of the Court of Tira-
na in that country. The proceeding is still under way and briefs
Bono Social - Spain
are being exchanged between the parties. No ruling has been
With the rulings of October 24 and 25, 2016 and November
issued.
Violations of Legislative Decree
231/2001
On August 10, 2018, a direct summons for judgment was no-
tified to e-distribuzione to appear before the Court of Milan on
May 23, 2019. In addition to e-distribuzione SpA, the proce-
eding involves one of its employees, as well as a number of
third-party companies and their representatives, concerning
alleged violations of Legislative Decree 231/2001 on the admi-
nistrative liability of legal persons. The proceeding was initia-
ted for the alleged commission of the crime of unauthorized
handling of waste (Article 256 of the Uniform Environmental
Code) and for the violation of the provisions of the Code of
Cultural Heritage (Legislative Decree 42/2004) in relation to
works to remove a power line. On January 16, 2020, the last
hearing was held, in which the Milan prosecutor’s office ar-
2, 2016, the Spanish Supreme Court declared Article 45.4 of
the Electricity Industry Law no. 24 of December 26, 2013 void
for incompatibility with Directive 2009/72/EC of the Europe-
an Parliament and of the Council of July 13, 2009, granting
the appeals filed by Endesa against the obligation to finance
the “Bono Social” (Social Bonus) mechanism. The Supreme
Court recognized Endesa’s right to receive all amounts that
had been paid to users, in addition to legal interest (equal to
about €214 million), under the “Bono Social” system, provi-
ded for in the law declared void by the Supreme Court. The
government challenged these rulings of the Supreme Court,
requesting that they be overturned, but the related appeals
were denied. Subsequently, the government initiated two
proceedings before the Constitutional Court requesting the
reopening of the Supreme Court proceedings so that the lat-
ter may ask for a preliminary ruling from the European Court
of Justice. The Constitutional Court granted the appeals and a
preliminary ruling on the petition before the European Court
321
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements of Justice is pending. The government has not requested the
of about R$200,000 (about €46,000) as well as other dama-
repayment of any sum so far.
Furnas-Tractebel litigation - Brazil
ges to be quantified at a later stage. Ampla appealed the ru-
ling and the appeal was upheld by the Tribunal de Justiça.
In response, on December 16, 2016, Cibran filed an appeal
(recurso especial) before the Superior Tribunal de Justiça, and
In 1998 the Brazilian company CIEN (now Enel CIEN) signed
the proceeding is under way.
an agreement with Tractebel for the delivery of electricity
With regard to the second case, filed in 2006 and regarding
from Argentina through its Argentina-Brazil interconnection
the years from 1987 to 2002, on June 1, 2015, the courts is-
line. As a result of Argentine regulatory changes introduced
sued a ruling ordering Ampla to pay R$80,000 Brazilian (about
as a consequence of the economic crisis in 2002, CIEN was
€19,000) in non-pecuniary damages as well as R$96,465,103
unable to make the electricity available to Tractebel. In Octo-
(about €23 million) in pecuniary damages, plus interest. On
ber 2009, Tractebel sued CIEN, which submitted its defense.
July 8, 2015 Ampla appealed the decision with the Tribunal de
CIEN cited force majeure as a result of the Argentine crisis
Justiça of Rio de Janeiro, which on November 6, 2019 issued
as the main argument in its defense. Out of court, the Tracte-
a ruling granting Ampla’s petition and denying all of Cibran’s
bel has indicated that it plans to acquire 30% of the inter-
claims. On November 25, 2019, Cibran appealed the ruling of
connection line involved in the dispute. In March 2014, the
the Tribunal de Justiça of Rio de Janeiro and the proceeding is
court had granted CIEN’s motion to suspend the proceedings
pending. Decisions at first instance are still pending with re-
in view of the existence of other litigation pending betwe-
gard to the remaining four suits. The value of all the disputes
en the parties. On February 14, 2019, CIEN received notice
is estimated at about R$524 million (about €116 million).
of an order reopening the proceeding, with the beginning of
expert witness operations. The amount involved in the dispu-
te is estimated at about R$118 million (about €28 million), plus
Coperva litigation - Brazil
unspecified damages.
As part of the project to expand the grid in rural areas of Brazil,
For analogous reasons, in May 2010 Furnas had also filed suit
in 1982 Companhia Energética do Ceará SA (Coelce), then
against CIEN for failure to deliver electricity, requesting pay-
owned by the Brazilian government and now an Enel Group
ment of about R$520 million (about €124 million), in addition
company, had entered into contracts for the use of the grids
to unspecified damages, seeking to acquire ownership (in this
of a number of cooperatives established specifically to pur-
case 70%) of the interconnection line. The proceeding was
sue the expansion project. The contracts provided for the pay-
decided in CIEN’s favor with a ruling of the Tribunal de Justiça
ment of a monthly fee by Coelce, which was also required to
with a definitive ruling of October 18, 2019, which denied all
maintain the networks.
of the claims of Furnas.
Cibran litigation - Brazil
Those contracts, between cooperatives established in special
circumstances and the then public-sector company, do not
specifically identify the grids governed by the agreements, whi-
ch has prompted a number of the cooperatives to sue Coelce
Companhia Brasileira de Antibióticos (Cibran) has filed six
asking for, among other things, a revision of the fees agreed
suits against Ampla Energia e Serviços SA (Ampla) to obtain
in the contracts. These actions include the suit filed by Coo-
damages for alleged losses incurred as a result of the inter-
perativa de Eletrificação Rural do V do Acarau Ltda (Coperva)
ruption of electricity service by the Brazilian distribution com-
with a value of about R$268 million (about €59 million). Coel-
pany between 1987 and 2002, in addition to non-pecuniary
ce was granted rulings in its favor from the trial court and the
damages. The Court ordered a unified technical appraisal for
court of appeal, but Coperva filed a further appeal (Embargo de
those cases, the findings of which were partly unfavorable to
Declaração), which was denied in a ruling of January 11, 2016.
Ampla. The latter challenged the findings, asking for a new
Coperva lodged an extraordinary appeal before the Superior
study, which led to the denial of part of Cibran’s petitions.
Tribunal de Justiça on February 3, 2016, which was granted on
Cibran subsequently appealed the decision and the ruling was
November 5, 2018 for the ruling issued in the previous appeal
in favor of Ampla.
(Embargo de Declaração). On December 3, 2018, Enel filed an
The first suit, filed in 1999 and regarding the years from 1994
appeal (Agravo Interno) against this ruling of the Superior Tribu-
to 1999, was adjudicated in September 2014 when the court
nal de Justiça. The proceedings are currently pending.
of first instance issued a ruling against Ampla, levying a fine
322
Consolidated Annual Report 2019 AGM litigation - Brazil
considered non-existent and denied Eletropaulo’s request
to include additional components in rates. On September 9,
In 1993, Celg Distribuiçao SA - Celg-D (today Enel Distribu-
2014, the administrative measure of ANEEL was suspended
ição Goiás), the Association of Municipalities of Goiás (AGM),
on a precautionary basis. The first-instance proceeding is in its
the State of Goiás and the Banca de Goiás reached an agree-
preliminary stages and the value of the suit is R$888 million
ment (convenio) for the payment of municipal debts to Celg-D
(about €196 million).
through the transfer of the portion of ICMS - Imposto sobre
Circulação de Mercadorias e Serviços (VAT) that the State
would have transferred to those governments. In 2001 the
Neoenergia arbitration - Brazil
parties to the agreement were sued by the individual munici-
On June 18, 2018, Neoenergia brought an arbitration action
pal governments to obtain a ruling that the agreement was in-
against Electropaulo (today Enel Distribuição São Paulo) befo-
valid, a position then upheld by the Supreme Federal Court on
re the Câmara de Arbitragem do Mercado (CAM) concerning
the grounds of the non-participation of the local governments
the investment agreement signed by the two companies on
themselves in the agreement process. In September 2004,
April 16, 2018. Neoenergia alleged unequal treatment of the
Celg-D reached a settlement with 23 municipalities. Between
participants in the procedure for the acquisition of Eletropau-
2007 and 2008, Celg-D was again sued on numerous occa-
lo. On September 3, 2018, Neoenergia modified its claim,
sions (there are currently 90 pending suits) seeking the re-
abandoning its request for specific execution of the obligation
stitution of amounts paid under the agreement. Despite the
contained in the contract. The current claim is a request for
ruling that the agreement was void, Celg-D argues that the
damages for losses caused by alleged non-performance of
payment of the debts on the part of the local governments is
the investment agreement. A ruling is pending. On February
legitimate, as electricity was supplied in accordance with the
27, an arbitration ruling was issued denying all of the claims
supply contracts and, accordingly, the claims for restitution of
of Neoenergia and ordering it to pay Electropaulo’s arbitration
amounts paid should be denied.
costs.
The proceedings pending before the Goiás State Court inclu-
de: (i) a suit filed by the Municipio de Aparecida de Goiânia,
which is pending at the preliminary stage at first instance,
Fortaleza - Brazil
for an amount of approximately R$565 million (approximately
Petroleo Brasileiro SA - Petrobras, as gas supplier for the For-
€125 million); (ii) a suit filed by the Municipio de Quirinópolis,
taleza plant (Central Geradora Termelétrica Fortaleza - CGTF)
also pending at first instance for an amount of about R$303
in Brazil, announced its intention to terminate the contract
million (about €67 million); (iii) a suit filed by the Municipio de
between the parties on the grounds that the agreement was
Anápolis, submitted to the court of first instance after a failed
allegedly imbalanced financially in consideration of current
attempt at conciliation between the parties, for an amount of
market conditions. The contract was signed in 2003 as part
approximately R$294 million (about €64 million).
of the “Priority Thermal Generation Program” established by
The total value of the suits is equal to about R$4 billion (about
the Brazilian government in order to increase thermoelectric
€894 million). It is important to emphasize that the contingent
generation and the security of supply in the country. The pro-
liability deriviing from this dispute is covered by the “Funac”
gram established that the Brazilian government would act as
provision established during the privatization of Celg-D.
the guarantor of the supply of gas at regulated prices defined
ANEEL litigation - Brazil
by the Brazil’s Ministry of Finance, Mines and Energy.
In order to guarantee the security of electricity supply in Bra-
zil, CGTF initiated legal action in the ordinary courts against
In 2014, Eletropaulo (today Enel Distribuição São Paulo) ini-
Petrobras with a request for precautionary protection, obtai-
tiated an action before the federal courts seeking to void the
ning, at the end of 2017, a court injunction suspending the
administrative measure of ANEEL (the National Electricity
termination of the contract, which was declared still in force.
Agency), which in 2012 retroactively introduced a negative
Subsequently, on February 27, 2018, the court decided to
coefficient to be applied in determining rates for the following
extinguish the action initiated by CGTF before the ordinary
regulatory period (2011-2015). With this provision, the Authori-
courts and, consequently, to revoke the precautionary me-
ty ordered the restitution of the value of some components of
asure that had permitted the supply of gas. CGTF filed ap-
the network previously included in rates because they were
peals against these latest decisions on both a precautionary
323
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements and ordinary basis, obtaining a second favorable ruling that
sequently extended the six-month time limit, and therefore,
enabled the plant to operate for some time but which was
in the absence of contrary court rulings the Quimbo plant is
subsequently revoked. CGTF has challenged this decision,
continuing to generate electricity as the oxygenation system
confident that the courts will recognize Petrobras’ obligation
installed by Emgesa has so far demonstrated that it can main-
to perform the contract. The proceeding is still pending.
tain the oxygen levels required by the court.
At the end of January 2018, CGTF received an arbitration re-
On March 22, 2018, ANLA and CAM jointly presented the final
quest from Petrobras in relation to the disputes described
report on the monitoring of water quality downstream of the
above and no decision has yet been issued.
dam of the El Quimbo hydroelectric plant. Both authorities
Subsequently, a precautionary measure was obtained in favor of
confirmed the compliance of Emgesa with the oxygen level
CGTF, ordering the suspension of the payment of certain amoun-
requirements. On June 15, 2018, Emgesa filed its final plea-
ts by CGTF to Enel Ceará (the purchaser of the electricity).
dings and is waiting for the court to issue its ruling.
On October 25, 2018, another precautionary measure was
obtained in favor of CGTF, ordering the restoration of Petrobras’
obligation to supply gas. The latter filed an appeal against this
decision, which was denied. Petrobras then challenged this de-
cision with a further appeal (Embargo de Declaração), which was
also denied on December 5, 2019. On January 27, 2020, Petro-
bras filed two different types of extraordinary appeal before the
Supreme Court and the Federal Court of Brasilia, respectively,
to contest this decision. The proceedings are currently pending.
El Quimbo - Colombia
A number of legal actions (“acciones de grupo” and “accio-
nes populares”) brought by residents and fishermen in the af-
fected area are pending with regard to the El Quimbo project
for the construction of a 400 MW hydroelectric plant in the
region of Huila (Colombia). More specifically, the first acción
de grupo, currently in the preliminary stage, was brought by
around 1,140 residents of the municipality of Garzón, who
claim that the construction of the plant would reduce their
business revenue by 30%. A second action was brought,
between August 2011 and December 2012, by residents and
businesses/associations of five municipalities of Huila clai-
ming damages related to the closing of a bridge (Paso El Co-
legio). With regard to acciones populares, or class action law-
suits, in 2008 a suit was filed by a number of residents of the
area demanding, among other things, that the environmental
permit be suspended. Another acción popular was brought
by a number of fish farming companies over the alleged im-
pact that filling the Quimbo basin would have on fishing in
the Betania basin downstream from Quimbo. After a num-
ber of precautionary rulings, on February 22, 2016, the Huila
court issued a ruling allowing generation to continue for six
months. The court ordered Emgesa to prepare a technical de-
sign that would ensure compliance with oxygen level requi-
rements and to provide collateral of about 20,000,000,000
Colombian pesos (about €5.5 million). The Huila court sub-
324
Nivel de Tensión Uno proceedings
- Colombia
This dispute involves an “acción de grupo” brought by Cen-
tro Médico de la Sabana hospital and other parties against
Codensa seeking restitution of allegedly excess rates. The
action is based upon the alleged failure of Codensa to apply
a subsidized rate that they claim the users should have paid
as Tensión Uno category users (voltage of less than 1 kV)
and owners of infrastructure, as established in Resolution no.
82/2002, as amended by Resolution no. 97/2008. The suit is
at a preliminary stage. The estimated value of the proceeding
is about 337 billion Colombian pesos (about €96 million).
Arbitration proceedings in
Colombia
On October 8, 2018 the Grupo Energía de Bogotá (GEB) (whi-
ch holds about 51.5% of Emgesa and Codensa) announced
that it had started arbitration proceedings before the Cen-
tro de Arbitraje y Conciliación de la Cámara de Comercio de
Bogotá against Enel Américas SA for an alleged breach of
contract in relation to the non-distribution of dividends in the
2016, 2017 and 2018 financial years for the companies Emge-
sa and Codensa and for the failure to comply with certain pro-
visions of the shareholders’ agreement. The GEB is claiming
damages of about €514 million plus interest. The procedure is
in the preliminary phase.
In parallel, GEB also initiated, respectively, 17 arbitration pro-
ceedings against Codensa and 20 against Emgesa, for a total
of 37 pending disputes (now joined into two separate proce-
edings for each company), in an attempt to void the decisions
of the Junta Directiva and shareholders’ meetings of the de-
fendant companies for alleged violation of mandatory rules,
defect of absolute nullity for illegality of motive and subject
Consolidated Annual Report 2019 matter and alleged violation of shareholders’ agreements. The
both VV and MH Manazment filed two suits in the Slovakian
value of the disputes is undetermined and the proceedings
courts to void the VEG Indemnity Agreement owing to the al-
are both in the preliminary phase.
leged connection of the latter with the VEG Operating Agree-
Gabcˇíkovo dispute - Slovakia
ment. These proceedings were joindered and, on September
27, 2017, a hearing was held before the Court of Bratislava in
which the judge denied the request of the plaintiffs for pro-
Slovenské elektrárne (“SE”) is involved in a number of cases
cedural reasons. Both VV and MH Manazment appealed that
before the national courts concerning the 720 MW Gabcˇíkovo
decision. A decision is pending in the first proceeding initiated
hydroelectric plant, which is administered by Vodohospodárs-
by VV, while the appeal filed by MH Manazment was denied
ka Výsatavba Štátny Podnik (“VV”) and whose operation and
by the Bratislava Court of Appeal on June 8, 2019, upholding
maintenance, as part of the privatization of SE in 2006, had
the decision of the court of first instance in favor of SE. At
been entrusted to SE for a period of 30 years under a manage-
the local level, SE was sued by VV for alleged unjustified en-
ment agreement (the VEG Operating Agreement).
richment (estimated at about €360 million plus interest) for
Immediately after the closing of the privatization, the Public
the period from 2006 to 2015. SE filed counter-claims for all
Procurement Office (PPO) filed suit with the Court of Brati-
of the proceedings under way and, in particular: (i) for 2006,
slava seeking to void the VEG Operating Agreement on the
2007 and 2008, at the hearing of June 26, 2019, the Court
basis of alleged violations of the regulations governing public
of Bratislava denied the claims of both parties for procedural
tenders, qualifying the contract as a service contract and as
reasons. The ruling in first instance was appealed by both VV
such governed by those regulations. In November 2011 the
and SE and briefs are being exchanged; (ii) for the proceeding
trial court ruled in favor of SE, whereupon the PPO immedia-
regarding 2011, a date for the hearing has yet to be set; (iii)
tely appealed the decision.
with regard to the proceeding involving 2012, at the hearing of
In parallel with the PPO action, VV also filed a number of sui-
April 24, 2019, the Court denied the petition of VV, which filed
ts, asking in particular for the voidance of the VEG Operating
an appeal on June 21, 2019 and the appeal is under way; (iv)
Agreement.
for the proceedings concerning 2010 and 2013, the hearing of
On December 12, 2014, VV withdrew unilaterally from the
the court of first instance has been set for March 10, 2020. Fi-
VEG Operating Agreement, notifying its termination on Mar-
nally, in another proceeding before the Court of Bratislava, VV
ch 9, 2015, for breach of contract. On March 9, 2015, the de-
asked for SE to return the fee for the transfer from SE to VV
cision of the appeals court overturned the ruling of the trial
of the technology assets of the Gabcˇíkovo plant as part of the
court and voided the contract as part of the action pursued by
privatization, with a value of about €43 million plus interest.
the PPO. SE lodged an extraordinary appeal against that deci-
The parties exchanged briefs. At the hearing on November
sion before the Supreme Court. At a hearing of June 29, 2016,
19, 2019, the court issued a preliminary decision on the case
the Supreme Court denied the appeal. SE then appealed the
in which it noted the lack of standing of VV. The hearing was
ruling to the Constitutional Court, which denied the appeal on
adjourned until March 12, 2020 and deadlines have been set
January 18, 2017.
for a further exchange of briefs by the parties.
In addition, SE lodged a request for arbitration with the Vien-
na International Arbitral Centre (VIAC) under the VEG Indem-
nity Agreement. Under that accord, which had been signed
as part of the privatization between the National Property
Fund (now MH Manazment) of the Slovak Republic and SE,
the latter is entitled to an indemnity in the event of the early
termination of the VEG Operating Agreement for reasons not
attributable to SE. The arbitration court rejected the objection
that it did not have jurisdiction and the arbitration proceeding
continued to examine the merits of the case, with a ruling on
the amount involved being deferred to any subsequent proce-
eding. On June 30, 2017, the arbitration court issued its ruling
denying the request of SE.
In parallel with the arbitration proceeding launched by SE,
Precautionary administrative
proceeding and Chucas
arbitration
PH Chucas SA (Chucas) is a special purpose entity establi-
shed by Enel Green Power Costa Rica SA after it won a tender
organized in 2007 by the Instituto Costarricense de Electrici-
dad (ICE) for the construction of a 50 MW hydroelectric plant
and the sale of the power generated by the plant to ICE under
a build, operate and transfer contract (BOT).
On May 27, 2015, under the provisions of the BOT contract,
Chucas initiated an arbitration proceeding before the Cám-
325
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements ara Costarricense-Norteamericana de Comercio (AMCHAM
CICA) seeking reimbursement of the additional costs incurred
to build the plant and as a result of the delays in completing
Tax litigation in Brazil
the project as well as voidance of the fine levied by ICE for
alleged delays in finalizing the works. In a decision issued in
Withholding tax - Ampla
In 1998, Ampla Energia e Serviços SA (Ampla) financed the
December 2017, the arbitration board ruled in Chucas’ favor,
acquisition of Coelce with the issue of bonds in the amount
granting recognition of the additional costs in the amount of
of $350 million (“Fixed Rate Notes” - FRN) subscribed by its
about $113 million (about €91 million) and legal costs and ru-
Panamanian subsidiary, which had been established to raise
ling that the fines should not be paid. ICE appealed the arbi-
funds abroad. Under the special rules then in force, subject to
tration ruling in the local courts and on September 5, 2019
maintaining the bond until 2008, the interest paid by Ampla
Chucas was notified of the ruling upholding the ICE’s appeal
to its subsidiary was not subject to withholding tax in Brazil.
to void the arbitration ruling for a number of formal procedural
However, the financial crisis of 1998 forced the Panamanian
reasons. On September 11, 2019, Chucas filed a “recurso de
company to refinance itself with its Brazilian parent, which
aclaración y adición” with the same court and is awaiting a
for that purpose obtained loans from local banks. The tax au-
decision.
GasAtacama Chile - Chile
thorities considered this financing to be the equivalent of the
early extinguishment of the bond, with the consequent loss
of entitlement to the exemption from withholding tax.
In December 2005, Ampla carried out a spin-off that invol-
On August 4, 2016, the Superintendencia de Electricidad y
ved the transfer of the residual FRN debt and the associated
Combustibles (SEC) fined GasAtacama Chile $8.3 million
rights and obligations to Ampla Investimentos e Serviços SA.
(about 5.8 billion Chilean pesos) for information provided by
On November 6, 2012, the Câmara Superior de Recursos
the latter to the CDEC-SING (Centro de Despacho Económico
Fiscais (the highest level of administrative courts) issued a
de Carga) between January 1, 2011 and October 29, 2015,
ruling against Ampla, for which the company promptly asked
relating to the Minimum Technical and Minimum Operating
that body for clarifications. On October 15, 2013, Ampla was
Time variables at the Atacama plant.
notified of the denial of the request for clarification (Embar-
GasAtacama Chile appealed this measure with the SEC,
go de Declaração), thereby upholding the previous adverse
which denied the appeal on November 2, 2016. GasAtacama
decision. The company provided security for the debt and on
Chile appealed this decision before the Santiago Court of Ap-
June 27, 2014 continued litigation before the ordinary courts
peal, which on April 9, 2019, issued a ruling reducing the fine
(Tribunal de Justiça).
to about $432,000 (about 290 million Chilean pesos). Both
In December 2017, the court appointed an expert to examine
GasAtacama Chile and the SEC have appealed this decision
the issue in greater detail in support of the future ruling. In
before the Supreme Court of Chile. On June 28, 2019, a he-
September 2018, the expert submitted a report, requesting
aring was held for both parties to submit arguments and on
additional documentation.
January 15, 2020 the Supreme Court upheld the ruling of the
In December 2018, the company provided the additional do-
Santiago Court of Appeal, leaving unchanged the reduction in
cumentation and is awaiting the court’s assessment of the
the fine established by that court.
arguments and documents presented.
In parallel, GasAtacama Chile also filed an appeal before the
The amount involved in the dispute at December 31, 2019
Constitutional Court, claiming that the legal provisions under
was about €288 million.
which the SEC imposed the fine had been repealed at the
time the penalty was issued. On July 17, 2018, the Constitu-
tional Court rejected GasAtacama Chile’s appeal.
PIS - Eletropaulo
In July 2000, Eletropaulo filed suit seeking a tax credit for PIS
In relation to this issue, some operators of the Sistema In-
(Programa Integração Social) paid in application of regulations
terconectado del Norte Grande (SING), including Aes Gener
(Decree Laws 2.445/1988 and 2.449/1988) that were sub-
SA, Eléctrica Angamos SA and Engie Energía Chile SA, have
sequently declared unconstitutional by the Supremo Tribunal
initiated actions in order to obtain damages in an amount of
Federal (STF). In May 2012, the Superior Tribunal de Justiça
about €58 million (the former) and about €141 million (the lat-
(STJ) issued a final ruling in favor of the company that reco-
ter two). The disputes were joindered in part in a single proce-
gnized the right to the credit.
eding and are currently in the preliminary phase.
In 2002, before the issue of that favorable final ruling, the
326
Consolidated Annual Report 2019 company had offset its credit against other federal taxes. This
the appropriateness of the accounting treatment.
behavior was contested by the federal tax authorities but the
The overall amount involved in the dispute at December 31,
company, claiming it had acted correctly, challenged in court
2019 was about €71 million.
the assessments issued by the federal tax authorities. Fol-
lowing defeat at the initial level of adjudication, the company
appealed.
Tax litigation - PIS - Eletropaulo
In December 1995, the Brazilian government increased the
The amount involved in the dispute at December 31, 2019
rate of the federal PIS (Programa Integração Social) tax from
was about €145 million.
0.50% to 0.65% with the issue of a provisional measure (Exe-
cutive Provisional Order).
ICMS - Ampla, Coelce and Eletropaulo
The States of Rio de Janeiro, Ceará and São Paulo issued a
Subsequently, the provisional measure was re-issued five ti-
mes before its definitive ratification into law in 1998. Under
number of tax assessments against Ampla Energia e Serviços
Brazilian legislation, an increase in the tax rate (or the establish-
SA (for the years 1996-1999 and 2007-2017), Companhia Ener-
ment of a new tax) can only be ordered by law and take effect
gética do Ceará (2003, 2004 and 2006-2012) and Eletropaulo
90 days after its publication.
(2008-2018), challenging the deduction of ICMS (Imposto so-
Eletropaulo therefore filed suit arguing that an increase in the
bre Circulação de Mercadorias e Serviços) in relation to the pur-
tax rate would only have been effective 90 days after the last
chase of certain non-current assets. The companies challenged
Provisional Order, claiming that the effects of the first four pro-
the assessments, arguing that they correctly deducted the tax
visional measures should be considered void (since they were
and asserting that the assets, the purchase of which generated
never ratified into law). This dispute ended in April 2008 with
the ICMS, are intended for use in their electricity distribution
recognition of the validity of the increase in the PIS rate starting
activities.
from the first provisional measure.
The companies are continuing to defend their actions at the
In May 2008, the Brazilian tax authorities filed a suit against
various levels of adjudication.
Eletropaulo to request payment of taxes corresponding to the
The amount involved in the disputes totaled approximately €98
rate increase from March 1996 to December 1998. Eletropau-
million at December 31, 2019.
lo has fought the request at the various levels of adjudication,
arguing that the time limit for the issue of the notice of asses-
Withholding tax - Endesa Brasil
On November 4, 2014, the Brazilian tax authorities issued an
sment had lapsed. In particular, since more than five years have
passed since the taxable event (December 1995, the date of
assessment against Endesa Brasil SA (now Enel Brasil SA) alle-
the first provisional measure) without issuing any formal instru-
ging the failure to apply withholding tax to payments of allege-
ment, the right of the tax authorities to request the payment of
dly higher dividends to non-resident recipients.
additional taxes and the authority to undertake legal action to
More specifically, in 2009, Endesa Brasil, as a result of the
obtain payment have been challenged.
first-time application of the IFRS-IAS, had cancelled goodwill,
In 2017, following the unfavorable decisions issued in previous
recognizing the effects in equity, on the basis of the correct ap-
rulings, Eletropaulo filed an appeal in defense of its rights and
plication of the accounting standards it had adopted. The Brazi-
its actions with the Superior Tribunal de Justiça (STJ) and the
lian tax authorities, however, asserted – during an audit – that
Supremo Tribunal Federal (STF). The proceedings are still pen-
the accounting treatment was incorrect and that the effects of
ding while the amounts subject to dispute have been covered
the cancellation should have been recognized through profit or
by a bank guarantee.
loss. As a result, the corresponding value (about €202 million)
With regard to the request of the Office of the Attorney Ge-
was reclassified as a payment of income to non-residents and,
neral of the Brazilian National Treasury Department to replace
therefore, subject to withholding tax of 15%.
the bank guarantee with a deposit in court, the court of second
It should be noted that the accounting treatment adopted by
instance granted the petition. The company therefore replaced
the company was agreed with the external auditor and also
the bank guarantee with a cash deposit and filed a clarification
confirmed by a specific legal opinion issued by a local firm.
motion against the related decision, which is currently awaiting
The first two levels of the administrative courts ruled for the tax
a decision.
authorities. At the third level of jurisdiction the company’s ap-
The total value of the suit at December 31, 2019 was about
peal was denied for formal reasons, a ruling that the company
€54 million.
opposed and will continue its defend its actions in court and
327
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements ICMS - Coelce
The State of Ceará has filed various tax assessments against
Companhia Energética do Ceará SA over the years (for tax pe-
riods from 2005 to 2014), contesting the determination of the
deductible portion of the ICMS (Imposto sobre Circulação de
Mercadorias e Serviços) and in particular the method of calcu-
lation of the pro-rata deduction with reference to the revenue
deriving from the application of a special rate envisaged by the
Brazilian government for the sale of electricity to low-income
households (Baixa Renda).
The company has appealed the individual assessments, ar-
guing that the tax deduction was calculated correctly. The com-
pany is defending its actions in the various levels of jurisdiction.
The total value of the suits at December 31, 2019 was about
€50 million.
FINSOCIAL - Eletropaulo
Following a final ruling issued by the Federal Regional Court
on September 11, 2011, Eletropaulo was recognized the right
to compensation for certain FINSOCIAL credits (social contri-
butions) relating to sums paid from September 1989 to March
1992.
Despite the expiration of the relative statute of limitations, the
Federal Tax Authority contested the determination of some
credits and rejected the corresponding offsetting, issuing tax
assessments that the company promptly challenged in the ad-
ministrative courts, defending the legitimacy of its calculations
and actions.
After an unfavorable ruling at first instance, the company filed
an appeal before the administrative court of second instance.
the issues for which an unfavorable outcome is considered
possible amounted to about €149 million at December 31,
2019: (i) Enel Iberia is defending the appropriateness of the
criterion adopted for determining the deductibility of capital
losses deriving from stock sales (around €103 million) and
certain financial charges (around €17 million); (ii) Endesa and
its subsidiaries are mainly defending the appropriateness of
the criteria adopted for the deductibility of certain financial
charges (about €23 million) and costs for decommissioning
nuclear power plants (about €6 million).
Income taxes - Enel Green Power
España SL
On June 7, 2017, the Spanish tax authorities issued a notice of
assessment to Enel Green Power España SL, contesting the
treatment of the merger of Enel Unión Fenosa Renovables SA
(“EUFER”) into Enel Green Power España SL in 2011 as a tax
neutral transaction, asserting that the transaction had no valid
economic reason.
On July 6, 2017, the company appealed the assessment at the
first administrative level (Tribunal Económico-Administrativo Cen-
tral - TEAC), defending the appropriateness of the tax treatment
applied to the merger. The company has provided the supporting
documentation demonstrating the synergies achieved as a result
of the merger in order to prove the existence of a valid econo-
mic reason for the transaction. On December 10, 2019, the TEAC
denied the appeal and the company will continue to defend its
actions in court (Audiencia Nacional), asking for the suspension
of collection to be continued through the current bank guarantee.
The total value of the suit at December 31, 2019 was about
The total value of the suits at December 31, 2019 was about
€93 million.
€49 million.
Tax litigation in Spain
Income tax - Enel Iberia, Endesa and
subsidiaries
In 2018, the Spanish tax authorities completed a general audit
involving the companies of the Group participating in the Spa-
nish tax consolidation mechanism. This audit, which began in
2016, involved corporate income tax, value added tax and wi-
thholding taxes (mainly for the years 2012 to 2014).
With reference to the main claims, the companies involved
have challenged the related assessments at the first admi-
nistrative level (Tribunal Económico-Administrativo Central -
TEAC), defending the correctness of their actions.
With regard to the disputes concerning corporate income tax,
328
Consolidated Annual Report 2019 53. Future accounting standards
The following provides a list of accounting standards, amend-
tion period (i.e. until the determination of an official alter-
ments and interpretations that will take effect for the Group
native interest rate benchmark). The reform will impact fair
after December 31, 2019:
value measurement, the effects of hedge accounting and
> “IFRS 17 - Insurance Contracts”, issued in May 2017. The
net financial position when the alternative rates are establi-
standard will take effect, subject to endorsement, for an-
shed.
nual periods beginning on or after January 1, 2021, with
> “Amendments to IFRS 10 and IAS 28 - Sale or Contribution
earlier application permitted.
of Assets between an Investor and its Associate or Joint
> “Amendments to References to the Conceptual Framework
Venture”, issued in September 2014. The amendments cla-
in IFRS Standards”, issued in March 2018. The document
rify the accounting treatment for sales or contribution of
sets out the amendments to affected standards in order to
assets between an investor and its associates or joint ven-
update references to the revised Conceptual Framework.
tures. They confirm that the accounting treatment depends
These amendments accompany the latest version of the
on whether the assets sold or contributed to an associa-
“Revised Conceptual Framework for Financial Reporting”,
te or joint venture constitute a ‘business’ (as defined in
issued in March 2018, which includes some new concepts,
IFRS 3). The IASB has deferred the effective date of these
provides updated definitions and recognition criteria and
amendments indefinitely, but if the amendments are ap-
clarifies some important concepts. The revised Conceptual
plied early, they must be applied prospectively.
Framework and the above amendments will take effect for
> “Amendments to IAS 1 - Classification of Liabilities as Cur-
annual reporting periods beginning on or after January 1,
rent or Non-current”, issued in January 2020. The amend-
2020.
ments regard the provisions of IAS 1 concerning the
> “Amendments to IFRS 3 - Definition of a Business”, issued
presentation of liabilities. More specifically, the changes
in October 2018, is intended to assist companies in deter-
clarify:
mining whether a set of activities and assets is a business.
- the criteria to adopt in classifying a liability as current
The amendments will take effect, subject to endorsement,
or non-current, specifying that the right of an entity to
for annual periods beginning on or after January 1, 2020.
defer settlement must exist at the end of the reporting
> “Amendments to IAS 1 and IAS 8 - Definition of Material”,
period;
issued in October 2018, to align the definition of “mate-
- the classification is unaffected by the intentions or
rial” across accounting standards and clarify a number of
expectations of management about when the entity
aspects. The definition of material is as follows: “informa-
will exercise its right to defer settlement of a liability;
tion is material if omitting, misstating or obscuring it could
- how the terms of a loan affect classification; and
reasonably be expected to influence decisions that the pri-
- that settlement regards the transfer to the counterparty
mary users of general purpose financial statements make
of cash, equity instruments, other assets or services.
on the basis of those financial statements, which provide
The amendments will take effect, subject to endorsement,
financial information about a specific reporting entity.” The
for annual periods beginning on or after January 1, 2022,
amendments will take effect for annual periods beginning
with earlier application permitted.
on or after January 1, 2020.
> “Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate
The Group is assessing the potential impact of the future ap-
Benchmark Reform”, issued in September 2019, which
plication of the new provisions.
amend provisions concerning hedge accounting and cer-
tain additional disclosure requirements during the transi-
329
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements 54. Events after the reporting period
Fortaleza - Brazil
Coronavirus pandemic (COVID-19)
Petroleo Brasileiro SA - Petrobras, the gas supplier for the For-
The novel coronavirus (COVID-19) epidemic began in Wuhan,
taleza plant (Central Geradora Termelétrica Fortaleza or CGTF)
China, and was first reported by national authorities to the
in Brazil, has – as discussed in note 52 “Contingent assets
World Health Organization on December 30, 2019.
and liabilities” – notified its intention to terminate the contract
In the early weeks of 2020, despite the considerable concern
signed between those parties on the basis of an alleged finan-
expressed by international organizations, the epidemic ap-
cial imbalance in consideration of current market conditions.
peared to be limited to certain areas of Southeast Asia and
Accordingly, on January 27, 2020, Petrobras filed two different
the Middle East, affecting only a number of regions in China,
types of extraordinary appeal before the Supreme Court and
South Korea and Iran.
the Federal Court of Brasilia, respectively, to contest this de-
In the second half of February, the first sporadic full-blown cas-
cision. The proceedings are currently pending.
es of COVID-19 in Italy started a second phase of the epidemic,
Endesa arbitration award
with a rapid escalation of its spread throughout Europe.
Recently, the World Health Organization confirmed that the
health emergency linked to COVID-19 has risen to the level of
Following numerous unsuccessful negotiations, on December
a pandemic and, just over two months after its initial report-
4, 2019, the most representative union within Endesa decided
ing, the number of cases identified outside China has now
to voluntarily participate in an arbitration proceeding before the
exceeded those reported within the country in which the epi-
Servicio Interconfederal de Mediación y Arbitraje (SIMA) with
demic first occurred. This is due to the growing spread of the
the aim of resolving the main differences relating to 5th Endesa
virus in Europe, where Italy and Spain have the largest num-
Collective Bargaining Agreement. As a prerequisite to the arbi-
ber of infections to date, the rapid rise in the United States, as
tration proceeding, in December 2019, Endesa’s largest union
well as the emergence of the first outbreaks in Latin America
agreed to waive its appeal pending before the Supreme Court
and Africa.
against the judgment of the court of first instance of March 26,
2019, which was favorable to Endesa, finding that the compa-
To contain the effects of the disease, pending medical trials to
ny’s interpretation of the appropriateness of the elimination of
develop a vaccine that can be administered to humans, gov-
certain social benefits for retired staff as a consequence of the
ernments have adopted numerous containment measures,
termination of 4th Endesa Collective Bargaining Agreement
essentially aimed at restricting the free movement of people,
was legitimate. The other trade unions involved have refused
which may be maintained, or made more stringent, based on
to join the arbitration proceeding, electing to go ahead with the
the future spread of the virus.
proceedings before the Supreme Court.
The Group has issued guidelines aimed at ensuring compli-
On January 21, 2020, the arbitration award was issued, with
ance with the measures introduced at the local level and tak-
the amendment of the corresponding parts of the 5th Ende-
en numerous steps to adopt the most suitable procedures to
sa Collective Bargaining Agreement, which was subsequent-
prevent and/or mitigate the effects of contagion in the work-
ly signed by the social partners. It entered force on January
place.
23, 2020. On the same date, Endesa also signed two further
In particular, business continuity is being managed thanks
collective bargaining agreements (a “framework guarantee
above all to:
contract” and an “agreement on voluntary measures to sus-
> the use of smart working for all employees whose jobs can
pend or terminate employment contracts”) with all the unions
be done remotely in the countries where the Group has
present in the company.
its largest presences, an approach introduced some years
At present, it is not possible to quantify the financial impact
ago that, thanks to investments in digitalization, allows our
that the changes adopted will have on 2020, which are cur-
people to work remotely at the same level of efficiency and
rently being evaluated by the company. The parties involved
effectiveness;
are working together in the transition process to determine
> the use of digitalized infrastructures that ensure the normal
and formalize the financial aspects of the accord.
operation of our generation assets, the continuity of elec-
330
Consolidated Annual Report 2019 tricity service and the remote management of all activities
measures taken at the local level to contain the spread of
relating to the market and our relationship with customers.
the disease;
An Enel Global Task Force is also operational at the country
> analyzing possible delays in supplies and tenders, at the
level, which is charged with coordinating and directing the
single Business Line supply chain level, that could be
actions to be undertaken in the countries where the Group
caused by the restrictions imposed on economic activity
operates, in synergy with the global technological Business
in some countries.
Lines.
In compliance with ESMA’s recommendations of March 11,
On the basis of the current information available, in a con-
2020, the Group has conducted internal analyzes to assess
stantly evolving scenario, we are constantly monitoring
the real and potential impacts of COVID-19 on business ac-
changes in macroeconomic and business variables in order
tivities, on the financial situation and on performance, which
to obtain the best estimate of the potential impacts on the
essentially concern the following dimensions:
Group in real time and enable their mitigation with response
> forecasting the macroeconomic impacts on the main areas
and contingency plans.
of interest and in the main countries in which the Group
Thanks to the Group’s geographical diversification, its integrat-
operates;
ed business model all along the value chain, a sound financial
> forecasting electricity and gas prices in energy and other
structure, as well as the level of digitalization achieved, which
commodity markets;
enables us guarantee the continuity of our operating activities
> forecasting of the impacts on electricity demand in the
with the same level of service, there is no evidence that COV-
countries in which the Group operates of the various
ID-19 will have a significant impact on the Group.
331
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statementsNotes to the financial statements Declaration of the Chief Executive
Officer and the officer responsible
for the preparation of the consolidated
financial report
332
Consolidated Annual Report 2019 Declaration of the Chief Executive Officer and
the officer responsible for the preparation of
the consolidated financial report of the Enel
Group at December 31, 2019, pursuant to the
provisions of Article 154-bis, paragraph 5, of
Legislative Decree 58 of February 24, 1998
and Article 81-ter of CONSOB Regulation no.
11971 of May 14, 1999
1. The undersigned Francesco Starace and Alberto De Paoli, in their respective capacities as Chief Executive Officer and offi-
cer responsible for the preparation of the financial reports of Enel SpA, hereby certify, taking account of the provisions of
Article 154-bis, paragraphs 3 and 4, of Legislative Decree 58 of February 24, 1998:
a. the appropriateness with respect to the characteristics of the Enel Group and
b. the effective adoption of the administrative and accounting procedures for the preparation of the consolidated financial
statements of the Enel Group in the period between January 1, 2019 and December 31, 2019.
2.
In this regard, we report that:
a. the appropriateness of the administrative and accounting procedures used in the preparation of the consolidated fi-
nancial statements of the Enel Group has been verified in an assessment of the internal control system for financial
reporting. The assessment was carried out on the basis of the guidelines set out in the “Internal Controls - Integrated
Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO);
b. the assessment of the internal control system for financial reporting did not identify any material issues.
3.
In addition, we certify that the consolidated financial statements of the Enel Group at December 31, 2019:
a. have been prepared in compliance with the international accounting standards recognized in the European Union pur-
suant to Regulation 2002/1606/EC of the European Parliament and of the Council of July 19, 2002;
b. correspond to the information in the books and other accounting records;
c. provide a true and fair representation of the performance and financial position of the issuer and the companies included
in the scope of consolidation.
4. Finally, we certify that the Report on Operations, accompanied by the consolidated financial statements of the Enel Group
at December 31, 2019, contains a reliable analysis of operations and performance, as well as the situation of the issuer and
the companies included in the scope of consolidation, together with a description of the main risks and uncertainties to
which they are exposed.
Rome, March 19, 2020
Francesco Starace
Alberto De Paoli
Chief Executive Officer of Enel SpA
Officer responsible for the preparation
of the financial reports of Enel SpA
Declaration of the Chief Executive Officer and the officer responsible
333
Enel GroupGovernanceStrategy & Risk ManagementPerformance & MetricsOutlookConsolidated financial statements Reports
Report of the Board of Statutory Auditors
to the Shareholders’ Meeting of Enel SpA
334
Consolidated Annual Report 2019 REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’
MEETING OF ENEL SpA CALLED TO APPROVE THE FINANCIAL STATEMENTS FOR 2019
(pursuant to Article 153 of Legislative Decree 58/1998 )
Shareholders,
During the year ended December 31, 2019 we performed the oversight activities
envisaged by law at Enel SpA (hereinafter also “Enel” or the “Company”). In
particular, pursuant to the provisions of Article 149, paragraph 1, of Legislative
Decree 58 of February 24, 1998 (hereinafter the “Consolidated Law on Financial
Intermediation”) and Article 19, paragraph 1 of Legislative Decree 39 of January 27,
2010, as amended by Legislative Decree 135 of July 17, 2016 (hereinafter “Decree
39/2010”), we monitored:
- compliance with the law and the corporate bylaws as well as compliance with the
principles of sound administration in the performance of the Company’s business;
-
-
-
-
-
-
the Company’s financial reporting process and the adequacy of the administrative
and accounting system, as well as the reliability of the latter in representing
operational events;
the statutory audit of the annual statutory and consolidated accounts and the
selection process and independence of the Audit Firm;
the adequacy and effectiveness of the internal control and risk management
system;
the adequacy of the organizational structure of the Company, within the scope of
our responsibilities;
the implementation of the corporate governance rules as provided for by the
2018 edition of the Corporate Governance Code
for Listed Companies
(hereinafter, the “Corporate Governance Code”), which the Company has
adopted;
the appropriateness of the instructions given by the Company to its subsidiaries
to enable Enel to meet statutory public disclosure requirements.
In performing our checks and assessments of the above issues, we did not find any
particular issues to report.
In compliance with the instructions issued by CONSOB with Communication no.
DEM/1025564 of April 6, 2001, as amended, we report the following:
• we monitored compliance with the law and the bylaws and we have no issues to
report;
Reports
335
• on a quarterly basis, we received adequate information from the Chief Executive
Officer, as well as through our participation in the meetings of the Board of
Directors of Enel, on activities performed, general developments in operations
and the outlook, and on transactions with the most significant impact on
performance or the financial position carried out by the Company and its
subsidiaries. We report that the actions approved and implemented were in
compliance with the law and the bylaws and were not manifestly imprudent,
risky, in potential conflict of interest or in contrast with the resolutions of the
Shareholders’ Meeting or otherwise prejudicial to the integrity of the Company’s
assets. For a discussion of the features of the most significant transactions,
please see the report on operations accompanying the separate financial
statements of the Company and the consolidated financial statements of the Enel
Group for 2019 (in the section “Significant events in 2019”);
• we did not find any atypical or unusual transactions conducted with third parties,
Group companies or other related parties;
•
in the section “Related parties” of the notes to the separate 2019 financial
statements of the Company, the directors describe the main transactions with
related-parties – the latter being identified on the basis of international
accounting standards and the instructions of CONSOB – carried out by the
Company, to which readers may refer for details on the transactions and their
financial impact. They also detail the procedures adopted to ensure that related-
party transactions are carried out in accordance with the principles of
transparency and procedural and substantive fairness. The transactions were
carried out in compliance with the approval and execution processes set out in
the related procedure – adopted in compliance with the provisions of Article 2391-
bis of the Italian Civil Code and the implementing regulations issued by CONSOB
– described in the report on corporate governance and ownership structure for
2019. All transactions with related parties reported in the notes to the separate
2019 financial statements of the Company were executed as part of ordinary
operations in the interest of the Company and settled on market terms and
conditions;
•
the Company declares that it has prepared its separate financial statements for
2019 on the basis of international accounting standards (IAS/IFRS) – and the
interpretations issued by the IFRIC and the SIC – endorsed by the European
Union pursuant to Regulation (EC) no. 1606/2002 and in force at the close of
2019, as well as the provisions of Legislative Decree 38 of February 28, 2005 and
its related implementing measures, as it did the previous year. The Company’s
2
336
Consolidated Annual Report 2019
• on a quarterly basis, we received adequate information from the Chief Executive
separate financial statements for 2019 have been prepared on a going-concern
Officer, as well as through our participation in the meetings of the Board of
basis using the cost method, with the exception of items that are measured at fair
Directors of Enel, on activities performed, general developments in operations
value under the IFRS-EU, as indicated in the accounting policies for the individual
and the outlook, and on transactions with the most significant impact on
items of the financial statements. The notes to the separate financial statements
performance or the financial position carried out by the Company and its
give detailed information on the accounting standards and measurement criteria
subsidiaries. We report that the actions approved and implemented were in
adopted. With regard to recently issued accounting standards, the notes to the
compliance with the law and the bylaws and were not manifestly imprudent,
separate financial statements report (i) standards applied for the first time in
risky, in potential conflict of interest or in contrast with the resolutions of the
2019, which as indicated in the notes did not have a significant impact in the year
Shareholders’ Meeting or otherwise prejudicial to the integrity of the Company’s
under review, and (ii) standards that will apply in the future. The separate
assets. For a discussion of the features of the most significant transactions,
financial statements for 2019 of the Company underwent the statutory audit by
please see the report on operations accompanying the separate financial
the Audit Firm, EY SpA, which issued an unqualified opinion, including with regard
statements of the Company and the consolidated financial statements of the Enel
to the consistency of the report on operations and certain information in the
Group for 2019 (in the section “Significant events in 2019”);
report on corporate governance and ownership structure of the Company with the
• we did not find any atypical or unusual transactions conducted with third parties,
financial statements, as well as the compliance of the report on operations with
Group companies or other related parties;
the provisions of law, pursuant to Article 14 of Decree 39/2010 and Article 10 of
•
in the section “Related parties” of the notes to the separate 2019 financial
Regulation (EU) no. 537/2014. The report of EY SpA also includes:
statements of the Company, the directors describe the main transactions with
related-parties – the latter being identified on the basis of international
accounting standards and the instructions of CONSOB – carried out by the
-
-
a discussion of key aspects of the audit report on the separate financial
statements; and
the declaration provided pursuant to Article 14, paragraph 2(e) of Decree
Company, to which readers may refer for details on the transactions and their
39/2010 stating that the audit firm did not identify any significant errors in
financial impact. They also detail the procedures adopted to ensure that related-
the contents of the report on operations;
party transactions are carried out in accordance with the principles of
•
the Company declares that it has also prepared the consolidated financial
transparency and procedural and substantive fairness. The transactions were
statements of the Enel Group for 2019 on the basis of international accounting
carried out in compliance with the approval and execution processes set out in
standards (IAS/IFRS) – and the interpretations issued by the IFRIC and the SIC –
the related procedure – adopted in compliance with the provisions of Article 2391-
endorsed by the European Union pursuant to Regulation (EC) no. 1606/2002 and
bis of the Italian Civil Code and the implementing regulations issued by CONSOB
in force at the close of 2019, as well as the provisions of Legislative Decree 38 of
– described in the report on corporate governance and ownership structure for
February 28, 2005 and its related implementing measures, as it did the previous
2019. All transactions with related parties reported in the notes to the separate
year. The 2019 consolidated financial statements of the Enel Group are also
2019 financial statements of the Company were executed as part of ordinary
prepared on a going-concern basis using the cost method, with the exception of
operations in the interest of the Company and settled on market terms and
items that are measured at fair value under the IFRS-EU (as indicated in the
conditions;
discussion of measurement criteria for the individual items) and non-current
•
the Company declares that it has prepared its separate financial statements for
assets (or disposal groups) classified as held for sale, which are measured at the
2019 on the basis of international accounting standards (IAS/IFRS) – and the
lower of carrying amount and fair value less costs to sell. The notes to the
interpretations issued by the IFRIC and the SIC – endorsed by the European
consolidated financial statements provide a detailed discussion of the accounting
Union pursuant to Regulation (EC) no. 1606/2002 and in force at the close of
standards and measurement criteria adopted. As regards recently issued
2019, as well as the provisions of Legislative Decree 38 of February 28, 2005 and
accounting standards, the notes to the consolidated financial statements discuss
its related implementing measures, as it did the previous year. The Company’s
(i) standards applied for the first time in 2019, in particular IFRS 16 Leases, with
2
Reports
3
337
a specific discussion of the associated impacts on the balance sheet and income
statement, and (ii) standards that will apply in the future. The consolidated
financial statements for 2019 of the Enel Group underwent statutory audit by the
Audit Firm EY SpA, which issued an unqualified opinion, including with regard to
the consistency of the consistency of the report on operations and certain
information in the report on corporate governance and ownership structure with
the consolidated financial statements, as well as the compliance of the report on
operations with the provisions of law, pursuant to Article 14 of Decree 39/2010
and Article 10 of Regulation (EU) no. 537/2014. The report of EY SpA also
includes:
-
-
a discussion of key aspects of the audit report on the consolidated financial
statements; and
the declaration provided pursuant to Article 14, paragraph 2(e) of Decree
39/2010 and Article 4 of CONSOB Regulation no. 20267 (implementing
Legislative Decree 254 of December 30, 2016) concerning, respectively, a
statement that the Audit Firm did not identify any significant errors in the
contents of the report on operations and that it verified that the Board of
Directors had approved the consolidated non-financial statement.
Under the terms of its engagement, EY SpA also issued unqualified opinions on
the financial statements for 2019 of the most significant Italian companies of the
Enel Group. Moreover, during periodic meetings with the representatives of the
Audit Firm, EY SpA, the latter did not raise any issues concerning the reporting
packages of the main foreign companies of the Enel Group, selected by the
auditors on the basis of the work plan established for the auditing of the
consolidated financial statements of the Enel Group, that would have a sufficiently
material impact to be reported in the opinion on those financial statements;
•
taking due account of the recommendations of the European Securities and
Markets Authority issued on January 21, 2013, and most recently confirmed with
the Public Statement of October 27, 2015, to ensure greater transparency
concerning the methods used by listed companies in testing goodwill for
impairment, in line with the recommendations contained in the joint Bank of Italy
– CONSOB – ISVAP document no. 4 of March 3, 2010, and in the light of
indications of CONSOB in its Communication no. 7780 of January 28, 2016, the
compliance of the impairment testing procedure with the provisions of IAS 36 was
expressly approved by the Board of Directors of the Company, having obtained a
favorable opinion in this regard from the Control and Risk Committee in February
2020, i.e. prior to the date of approval of the financial statements for 2019;
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includes:
-
-
statements; and
a specific discussion of the associated impacts on the balance sheet and income
• we examined the Board of Directors’ proposal for the allocation of net income for
statement, and (ii) standards that will apply in the future. The consolidated
2019 and have no comments in this regard;
financial statements for 2019 of the Enel Group underwent statutory audit by the
• we note that the Board of Directors of the Company certified, following
Audit Firm EY SpA, which issued an unqualified opinion, including with regard to
appropriate checks by the Control and Risk Committee and the Board of Statutory
the consistency of the consistency of the report on operations and certain
Auditors in March 2020, that as at the date on which the 2019 financial
information in the report on corporate governance and ownership structure with
statements were approved, the Enel Group continued to meet the conditions
the consolidated financial statements, as well as the compliance of the report on
established by CONSOB (set out in Article 15 of the Market Rules, approved with
operations with the provisions of law, pursuant to Article 14 of Decree 39/2010
Resolution no. 20249 of December 28, 2017) concerning the accounting
and Article 10 of Regulation (EU) no. 537/2014. The report of EY SpA also
transparency and adequacy of the organizational structures and internal control
a discussion of key aspects of the audit report on the consolidated financial
countries must comply with so that Enel shares can continue to be listed on
systems that subsidiaries established and regulated under the law of non-EU
regulated markets in Italy;
the declaration provided pursuant to Article 14, paragraph 2(e) of Decree
• we monitored, within the scope of our responsibilities, the adequacy of the
39/2010 and Article 4 of CONSOB Regulation no. 20267 (implementing
organizational structure of the Company (and the Enel Group as a whole),
Legislative Decree 254 of December 30, 2016) concerning, respectively, a
obtaining information from department heads and in meetings with the boards of
statement that the Audit Firm did not identify any significant errors in the
auditors or equivalent bodies of a number of the main Enel Group companies in
contents of the report on operations and that it verified that the Board of
Italy and abroad, for the purpose of the reciprocal exchange of material
Directors had approved the consolidated non-financial statement.
information. As from the second half of 2014, the organizational structure of the
Under the terms of its engagement, EY SpA also issued unqualified opinions on
Enel Group is based on a matrix of Global Business Lines and geographical areas.
the financial statements for 2019 of the most significant Italian companies of the
Taking account of the changes implemented most recently in 2019, it is organized
Enel Group. Moreover, during periodic meetings with the representatives of the
into: (i) Global Business Lines, which are responsible for managing and
Audit Firm, EY SpA, the latter did not raise any issues concerning the reporting
developing assets, optimizing their performance and the return on capital
packages of the main foreign companies of the Enel Group, selected by the
employed in the various geographical areas in which the Group operates. The
auditors on the basis of the work plan established for the auditing of the
Global Business Lines are: Global Infrastructure and Networks, Global Power
consolidated financial statements of the Enel Group, that would have a sufficiently
Generation, Global Trading and Enel-X; (ii) Regions and Countries, which are
material impact to be reported in the opinion on those financial statements;
responsible for managing relationships with local institutional bodies, regulatory
•
taking due account of the recommendations of the European Securities and
authorities, the media and other local stakeholders, as well as the development of
Markets Authority issued on January 21, 2013, and most recently confirmed with
the customer base with regard to the sale of electricity and gas, in each of the
the Public Statement of October 27, 2015, to ensure greater transparency
countries in which the Group is present, while also providing staff and other
concerning the methods used by listed companies in testing goodwill for
service support to the Global Business Lines and adopting appropriate security,
impairment, in line with the recommendations contained in the joint Bank of Italy
safety and environmental standards. Regions and Countries comprise: Italy,
– CONSOB – ISVAP document no. 4 of March 3, 2010, and in the light of
Iberia, Europe and Euro-Mediterranean Affairs, Latin America, North America, and
indications of CONSOB in its Communication no. 7780 of January 28, 2016, the
Africa, Asia and Oceania; (iii) Global Service Functions, which are responsible for
compliance of the impairment testing procedure with the provisions of IAS 36 was
managing information and communication technology activities (Global Digital
expressly approved by the Board of Directors of the Company, having obtained a
Solutions) and procurement at the Group level (Global Procurement); and (iv)
favorable opinion in this regard from the Control and Risk Committee in February
Holding Company Functions, which among other things are responsible for
2020, i.e. prior to the date of approval of the financial statements for 2019;
managing governance processes at the Group level. They include: Administration,
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Finance and Control, Human Resources and Organization, Communications, Legal
and Corporate Affairs, Audit and Innovation. The Board of Statutory Auditors feels
that the organizational system described above is adequate to support the
strategic development of the Company and the Enel Group and is also consistent
with control requirements;
• during meetings with the boards of auditors or equivalent bodies of a number of
the Group’s main companies in Italy and abroad, no material issues emerged that
would require reporting here;
• we monitored the independence of the Audit Firm EY SpA, having received from
them specific written confirmation today that they met that requirement
(pursuant to the provisions of Article 6, paragraph 2(a), of Regulation (EU)
537/2014) and having discussed the substance of that declaration with the audit
partner. In this regard, we also monitored – as provided for under Article 19,
paragraph 1(e), of Decree 39/2010 – the nature and the scale of non-audit
services provided to the Company and other Enel Group companies by EY SpA
and the entities belonging to its network, the fees for which are reported in the
notes to the separate financial statements of the Company. Following our
examinations, the Board of Statutory Auditors feels that there are no critical
issues concerning the independence of the Audit Firm EY SpA. We held periodic
meetings with the representatives of the Audit Firm, pursuant to Article 150,
paragraph 3, of the Consolidated Law on Financial Intermediation, and no
material issues emerged that would require mention in this report.
As regards the provisions of Article 11 of Regulation (EU) 537/2014, EY SpA today
provided the Board of Statutory Auditors with the “additional report” for 2019 on
the results of the statutory audit carried out, which indicates no significant
difficulties encountered during the audit or any significant shortcomings in the
internal control system for financial reporting or the Enel accounting system. The
Board of Statutory Auditors will transmit that report to the Board of Directors
promptly, accompanied by any comments it may have, in accordance with Article
19, paragraph 1(a), of Decree 39/2010.
The Audit Firm also reported that it did not prepare any management letter for
2019;
• with regard to the activities performed by the Board of Statutory Auditors in 2019
concerning the specific selection process for the engagement to perform the
statutory audit of the accounts of Enel SpA for the 2020-2028 period, please see
(i) the report referred to in Article 153 of the Consolidated Law on Financial
Intermediation, approved by the Board of Statutory Auditors on April 17, 2019,
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Finance and Control, Human Resources and Organization, Communications, Legal
submitted to the Ordinary Shareholders’ Meeting of May 16, 2019, and (ii) the
and Corporate Affairs, Audit and Innovation. The Board of Statutory Auditors feels
explanatory report on the sixth item of the agenda of that Shareholders’ Meeting;
that the organizational system described above is adequate to support the
• we monitored the financial reporting process, the appropriateness of the
strategic development of the Company and the Enel Group and is also consistent
administrative and accounting system and
its reliability
in representing
with control requirements;
operational events, as well as compliance with the principles of sound
• during meetings with the boards of auditors or equivalent bodies of a number of
administration in the performance of the Company’s business and we have no
the Group’s main companies in Italy and abroad, no material issues emerged that
comments in that regard. We conducted our checks by obtaining information from
would require reporting here;
the head of the Administration, Finance and Control department (taking due
• we monitored the independence of the Audit Firm EY SpA, having received from
account of the head’s role as the officer responsible for the preparation of the
them specific written confirmation today that they met that requirement
Company’s financial reports), examining Company documentation and analyzing
(pursuant to the provisions of Article 6, paragraph 2(a), of Regulation (EU)
the findings of the examination performed by EY SpA. The Chief Executive Officer
537/2014) and having discussed the substance of that declaration with the audit
and the officer responsible for the preparation of the financial reports of Enel
partner. In this regard, we also monitored – as provided for under Article 19,
issued a statement (regarding
the Company’s 2019 separate
financial
paragraph 1(e), of Decree 39/2010 – the nature and the scale of non-audit
statements) certifying (i) the appropriateness with respect to the characteristics
services provided to the Company and other Enel Group companies by EY SpA
of the Company and the effective adoption of the administrative and accounting
and the entities belonging to its network, the fees for which are reported in the
procedures used in the preparation of the financial statements; (ii) the
notes to the separate financial statements of the Company. Following our
compliance of the content of the financial reports with international accounting
examinations, the Board of Statutory Auditors feels that there are no critical
standards endorsed by the European Union pursuant to Regulation (EC) no.
issues concerning the independence of the Audit Firm EY SpA. We held periodic
1606/2002; (iii) the correspondence of the financial statements with the
meetings with the representatives of the Audit Firm, pursuant to Article 150,
information in the books and other accounting records and their ability to provide
paragraph 3, of the Consolidated Law on Financial Intermediation, and no
a true and fair representation of the performance and financial position of the
material issues emerged that would require mention in this report.
Company; and (iv) that the report on operations accompanying the financial
As regards the provisions of Article 11 of Regulation (EU) 537/2014, EY SpA today
statements contains a reliable analysis of operations and performance, as well as
provided the Board of Statutory Auditors with the “additional report” for 2019 on
the situation of the issuer, together with a description of the main risks and
the results of the statutory audit carried out, which indicates no significant
uncertainties to which it is exposed. The statement also affirmed that the
difficulties encountered during the audit or any significant shortcomings in the
appropriateness of the administrative and accounting procedures used in the
internal control system for financial reporting or the Enel accounting system. The
preparation of the separate financial statements of the Company had been
Board of Statutory Auditors will transmit that report to the Board of Directors
verified in an assessment of the internal control system for financial reporting
promptly, accompanied by any comments it may have, in accordance with Article
(supported by the findings of the independent testing performed by a qualified
19, paragraph 1(a), of Decree 39/2010.
external advisor and the Company’s Audit department, with each focusing on
The Audit Firm also reported that it did not prepare any management letter for
their respective areas of responsibility on the basis of the different nature of the
2019;
various checks) and that the assessment of the internal control system did not
• with regard to the activities performed by the Board of Statutory Auditors in 2019
identify any material issues. An analogous statement was prepared for the
concerning the specific selection process for the engagement to perform the
consolidated financial statements for 2019 of the Enel Group;
statutory audit of the accounts of Enel SpA for the 2020-2028 period, please see
• we monitored the adequacy and effectiveness of the internal control system,
(i) the report referred to in Article 153 of the Consolidated Law on Financial
primarily through constant participation of the head of the Audit department of
Intermediation, approved by the Board of Statutory Auditors on April 17, 2019,
the Company in the meetings of the Board of Statutory Auditors and holding most
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of the meetings jointly with the Control and Risk Committee, as well as through
periodic meetings with the body charged with overseeing the operation of and
compliance with the organizational and management model adopted by the
Company pursuant to Legislative Decree 231/2001. In the light of our
examination and in the absence of significant issues, the internal control and risk
management system can be considered adequate and effective. In February
2020, the Board of Directors of the Company expressed an analogous assessment
of the situation and also noted, in November 2019, that the main risks associated
with the strategic targets set out in the 2020-2024 Business Plan were compatible
with the management of the Company in a manner consistent with those targets;
•
in 2019 we received one complaint concerning events deemed censurable
pursuant to Article 2408 of the Italian Civil Code from a shareholder on the
occasion of the Shareholders’ Meeting of May 16, 2019. More specifically, the
complaint regarded the allegedly arbitrary manner with which the Chairman of
the Meeting determined the amount of time available to shareholders to request
the floor and make their comments, in violation of the Rules of the Shareholders’
meeting. The Board of Statutory Auditors, having conducted appropriate enquiries
with the support of the Legal and Corporate Affairs department, found no
irregularities to report and notified the shareholder involved of our findings. No
petitions were received by the Board of Statutory Auditors during 2019;
• we monitored the effective implementation of the Corporate Governance Code,
which the Company has adopted, verifying the compliance of Enel’s governance
arrangements with the recommendations of the Code. Detailed information on the
Company’s corporate governance system can be found in the report on corporate
governance and ownership structure for 2019. In March 2019 and February 2020,
the Board of Statutory Auditors verified that the Board of Directors, in evaluating
the independence of non-executive directors, correctly applied the assessment
criteria specified in the Corporate Governance Code and the principle of the
priority of substance over form set out in that Code, adopting a transparent
procedure, the details of which are discussed in the report on corporate
governance and ownership structure for 2019.
With regard to the so-called “self-assessment” of the independence of its
members, the Board of Statutory Auditors – in May 2019 and in February 2020 –
ascertained that all standing statutory auditors met the relevant requirements set
out in the Consolidated Law on Financial Intermediation and in the Corporate
Governance Code.
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Consolidated Annual Report 2019
of the meetings jointly with the Control and Risk Committee, as well as through
In the final part of 2019 and during the first two months of 2020, the Board of
periodic meetings with the body charged with overseeing the operation of and
Statutory Auditors, with the support of an independent advisory firm, conducted a
compliance with the organizational and management model adopted by the
board review assessing the size, composition and functioning of the Board of
Company pursuant to Legislative Decree 231/2001. In the light of our
Statutory Auditors, as was done for 2018, similar to the review conducted for the
examination and in the absence of significant issues, the internal control and risk
Board of Directors since 2004. This is a best practice that the Board of Statutory
management system can be considered adequate and effective. In February
Auditors intended to adopt even in the absence of a specific recommendation of
2020, the Board of Directors of the Company expressed an analogous assessment
the Corporate Governance Code, a “peer-to-peer review” approach, i.e. the
of the situation and also noted, in November 2019, that the main risks associated
assessment not only of the functioning of the body as a whole, but also of the
with the strategic targets set out in the 2020-2024 Business Plan were compatible
style and content of the contribution provided by each of the auditors. The
with the management of the Company in a manner consistent with those targets;
findings of the board review for 2019 offer a positive picture of the functioning of
•
in 2019 we received one complaint concerning events deemed censurable
Enel’s Board of Statutory Auditors, from which it emerges that this body – despite
pursuant to Article 2408 of the Italian Civil Code from a shareholder on the
having significantly changed its composition following the appointment of a new
occasion of the Shareholders’ Meeting of May 16, 2019. More specifically, the
Board by the Ordinary Shareholders’ Meeting of May 16, 2019 – has adopted
complaint regarded the allegedly arbitrary manner with which the Chairman of
effective and efficient operating methods that comply with the reference
the Meeting determined the amount of time available to shareholders to request
regulatory framework, as attested by the advisory firm charged with supporting
the floor and make their comments, in violation of the Rules of the Shareholders’
the evaluation process;
meeting. The Board of Statutory Auditors, having conducted appropriate enquiries
During 2019, the Board of Statutory Auditors also participated in an induction
with the support of the Legal and Corporate Affairs department, found no
program, structured into 4 meetings, organized by the Company to provide
irregularities to report and notified the shareholder involved of our findings. No
directors and statutory auditors with an adequate understanding of the business
petitions were received by the Board of Statutory Auditors during 2019;
sectors in which the Enel Group operates, as well as the company dynamics and
• we monitored the effective implementation of the Corporate Governance Code,
their evolution, market trends and the applicable regulatory framework. For an
which the Company has adopted, verifying the compliance of Enel’s governance
analysis of the issues addressed at the various induction sessions, please see the
arrangements with the recommendations of the Code. Detailed information on the
report on corporate governance and ownership structure for 2019;
Company’s corporate governance system can be found in the report on corporate
• we monitored the application of the provisions of Legislative Decree 254 of
governance and ownership structure for 2019. In March 2019 and February 2020,
December 30, 2016 (hereinafter “Decree 254) concerning the disclosure of non-
the Board of Statutory Auditors verified that the Board of Directors, in evaluating
financial and diversity information by certain large undertakings and groups. In
the independence of non-executive directors, correctly applied the assessment
performing that activity, we monitored the adequacy of the organizational,
criteria specified in the Corporate Governance Code and the principle of the
administrative, reporting and control system established by the Company in order
priority of substance over form set out in that Code, adopting a transparent
to enable the accurate representation in the consolidated non-financial statement
procedure, the details of which are discussed in the report on corporate
for 2019 of the activity of the Enel Group, its results and its impacts in the non-
governance and ownership structure for 2019.
financial areas referred to in Article 3, paragraph 1, of Decree 254, and have no
With regard to the so-called “self-assessment” of the independence of its
comments in this regard. The Audit Firm, EY SpA, issued, pursuant to Article 3,
members, the Board of Statutory Auditors – in May 2019 and in February 2020 –
paragraph 10, of Decree 254 and Article 5 of CONSOB Regulation no. 20267 of
ascertained that all standing statutory auditors met the relevant requirements set
January 18, 2018, its certification of the conformity of the information provided in
out in the Consolidated Law on Financial Intermediation and in the Corporate
the consolidated non-financial statement with the requirements of applicable law;
Governance Code.
•
since the listing of its shares, the Company has adopted specific rules (most
recently amended in September 2018) for the internal management and
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processing of confidential information, which also set out the procedures for the
disclosure of documentation and information concerning the Company and the
Group, with specific regard to inside information. Those rules (which can be
consulted on the corporate website) contain appropriate provisions directed at
subsidiaries to enable Enel to comply with statutory public disclosure
requirements, pursuant to Article 114, paragraph 2, of the Consolidated Law on
Financial Intermediation;
•
in 2002 the Company also adopted (and has subsequently updated, most recently
in December 2019) a Code of Ethics (also available on the corporate website) that
expresses the commitments and ethical responsibilities involved in the conduct of
business, regulating and harmonizing corporate conduct in accordance with
standards of maximum transparency and fairness with respect to all stakeholders;
• with regard to the provisions of Legislative Decree 231 of June 8, 2001 – which
introduced into Italian law a system of administrative (in fact criminal) liability for
companies for certain types of offences committed by its directors, managers or
employees on behalf of or to the benefit of the company – since July 2002 Enel
has adopted a compliance program consisting of a “general part” and various
“special parts” concerning the difference offences specified by Legislative Decree
231/2001 that the program is intended to prevent. For a description of the
manner in which the model has been adapted to the characteristics of the various
Italian companies of the Group, as well as a description of the purposes of the
“Enel Global Compliance Program” for the Group’s foreign companies, please see
the report on corporate governance and ownership structure for 2019. The
structure that monitors the operation and compliance with the program and is
responsible for updating it is a collegial body. Since December 2017 it has been
composed of three external members with specific professional expertise on
corporate organization matters and corporate criminal law. The Board of Statutory
Auditors received adequate information on the main activities carried out in 2019
by that structure, including in meetings with its members. Our examination of
those activities found no facts or situations that would require mention in this
report;
•
in 2019, the Board of Statutory Auditors issued a favorable opinion (at the
meeting of February 5, 2019), concerning the 2019 Audit Plan in accordance with
the provisions of Article 7.C.1, letter c) of the Corporate Governance Code,
preliminary to the resolutions pertaining to the Board of Directors in that regard;
• a report on the fixed and variable compensation accrued by those who served as
Chairman of the Board of Directors, the Chief Executive Officer/General Manager
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Consolidated Annual Report 2019
processing of confidential information, which also set out the procedures for the
and other directors in 2019 for their respective positions and any compensation
disclosure of documentation and information concerning the Company and the
instruments awarded to them is contained in the Report on Remuneration Policy
Group, with specific regard to inside information. Those rules (which can be
for 2020 and Remuneration Paid in 2019 referred to in Article 123-ter of the
consulted on the corporate website) contain appropriate provisions directed at
Consolidated Law on Financial Intermediation, approved by the Board of
subsidiaries to enable Enel to comply with statutory public disclosure
Directors, acting on a proposal of the Nomination and Compensation Committee
requirements, pursuant to Article 114, paragraph 2, of the Consolidated Law on
on April 2, 2020, which will be published in compliance with the time limits
Financial Intermediation;
established by law. The design of these compensation instruments is in line with
•
in 2002 the Company also adopted (and has subsequently updated, most recently
best practices, complying with the principle of establishing a link with appropriate
in December 2019) a Code of Ethics (also available on the corporate website) that
financial and non-financial performance targets and pursuing the creation of
expresses the commitments and ethical responsibilities involved in the conduct of
shareholder value over the medium and long term. The proposals to the Board of
business, regulating and harmonizing corporate conduct in accordance with
Directors concerning such forms of compensation and the determination of the
standards of maximum transparency and fairness with respect to all stakeholders;
associated parameters were prepared by the Nomination and Compensation
• with regard to the provisions of Legislative Decree 231 of June 8, 2001 – which
Committee, which is made up entirely of independent directors, drawing on the
introduced into Italian law a system of administrative (in fact criminal) liability for
findings of benchmark analyses, including at the international level, conducted by
companies for certain types of offences committed by its directors, managers or
an independent consulting firm. In addition, the Report on Remuneration Policy
employees on behalf of or to the benefit of the company – since July 2002 Enel
for 2020 and Remuneration Paid in 2019 referred to in Article 123-ter of the
has adopted a compliance program consisting of a “general part” and various
Consolidated Law on Financial Intermediation contains, in compliance with the
“special parts” concerning the difference offences specified by Legislative Decree
applicable CONSOB regulations, specific disclosures on the remuneration earned
231/2001 that the program is intended to prevent. For a description of the
in 2019 by key management personnel (in aggregate form for the latter) and by
manner in which the model has been adapted to the characteristics of the various
the members of the oversight body.
Italian companies of the Group, as well as a description of the purposes of the
The Board of Statutory Auditors also supervised the process of preparing the
“Enel Global Compliance Program” for the Group’s foreign companies, please see
remuneration policy for 2020, without finding any critical issues. In particular,
the report on corporate governance and ownership structure for 2019. The
oversight activity examined the consistency of the various measures envisaged by
structure that monitors the operation and compliance with the program and is
that policy with the provisions of Directive (EU) 2017/828 (the transposition of
responsible for updating it is a collegial body. Since December 2017 it has been
which into Italian law had not yet been completed at the date of this Report), with
composed of three external members with specific professional expertise on
the recommendations of the Corporate Governance Code, as well as with the
corporate organization matters and corporate criminal law. The Board of Statutory
results of the benchmark analysis carried out, including at the international level,
Auditors received adequate information on the main activities carried out in 2019
by an independent consulting firm that the Nomination and Compensation
by that structure, including in meetings with its members. Our examination of
Committee elected to engage.
those activities found no facts or situations that would require mention in this
report;
The Board of Statutory Auditors’ oversight activity in 2019 was carried out in 17
•
in 2019, the Board of Statutory Auditors issued a favorable opinion (at the
meetings (12 of which held jointly with the Control and Risk Committee) and with
meeting of February 5, 2019), concerning the 2019 Audit Plan in accordance with
participation in the 14 meetings of the Board of Directors, and, through the chairman
the provisions of Article 7.C.1, letter c) of the Corporate Governance Code,
or one or more of its members, in the 8 meetings of the Nomination and
preliminary to the resolutions pertaining to the Board of Directors in that regard;
Compensation Committee, in the only meeting of the Related Parties Committee and
• a report on the fixed and variable compensation accrued by those who served as
in the 8 meetings of the Corporate Governance and Sustainability Committee. The
Chairman of the Board of Directors, the Chief Executive Officer/General Manager
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delegated magistrate of the State Audit Court participated in the meetings of the
Board of Statutory Auditors and those of the Board of Directors.
During the course of this activity and on the basis of information obtained from EY
SpA, no omissions, censurable facts, irregularities or other significant developments
were found that would require reporting to the regulatory authorities or mention in
this report.
Finally, the Board of Statutory Auditors notes, as at the date of this Report, the
major global health emergency associated with the COVID-19 epidemic. Italian
authorities have introduced significant limitations on freedom of movement within the
country to contain the contagion, among other things imposing bans on gatherings.
In this context, the Board of Statutory Auditors, in compliance with the above
measures to contain the COVID-19 epidemic, has held its meetings – beginning with
the meeting of February 26, 2020 – exclusively with the use of audio/video
conference systems by all participants, nevertheless ensuring their identification and
the exchange of documentation, in accordance with the provisions of Article 25.4 of
the Bylaws.
The Board of Statutory Auditors also notes that, as permitted under Article 106,
paragraph 4, of Decree Law 18 of March 17, 2020, the Company's Board of Directors
has called the ordinary Shareholders’ Meeting for May 14, 2020 in a single call,
establishing that it will be conducted in a manner that enables shareholders to
participate exclusively through the shareholders’ representative designated by the
Company, to whom shareholders may also confer proxies or sub-proxies pursuant to
Article 135-novies of the Consolidated Law on Financial Intermediation, also in
derogation from the provisions of Article 135-undecies, paragraph 4, of the same
Consolidated Law. The Board of Statutory Auditors will ensure that the rights of the
Shareholders can be exercised on the occasion of the aforementioned Shareholders'
Meeting, within the limits permitted by the special procedures envisaged for holding
the Meeting.
In the coming months, the Board of Statutory Auditors will carry out its oversight
activity, in close coordination with the Board of Directors, to evaluate the impact of
the COVID-19 epidemic on the performance and financial situation of the Company
and the Enel Group.
Based on the oversight activity performed and the information exchanged with the
independent auditors EY SpA, we recommend that you approve the Company’s
financial statements for the year ended December 31, 2019 in conformity with the
proposals of the Board of Directors.
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Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
dal Consiglio di Amministrazione.
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
dal Consiglio di Amministrazione.
Roma, 8 aprile 2020
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
Il Collegio Sindacale
delegated magistrate of the State Audit Court participated in the meetings of the
Rome, April 8, 2020 The Board of Statutory Auditors
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
dal Consiglio di Amministrazione.
Roma, 8 aprile 2020
Il Collegio Sindacale
Roma, 8 aprile 2020
Il Collegio Sindacale
_____________
Dott.ssa Barbara Tadolini Presidente
_____________
____________________
Dott.ssa Barbara Tadolini Presidente
Barbara Tadolini - Chairman
_____________
Dott.ssa Barbara Tadolini Presidente
____________________
____________________
____________________
Avv. Romina Guglielmetti – Sindaco
Romina Guglielmetti - Auditor
Avv. Romina Guglielmetti – Sindaco
____________________
Avv. Romina Guglielmetti – Sindaco
____________________
Claudio Sottoriva - Auditor
____________________
____________________
____________________
Prof. Claudio Sottoriva – Sindaco
Prof. Claudio Sottoriva – Sindaco
Prof. Claudio Sottoriva – Sindaco
13
13
13
12
Reports
13
347
Board of Statutory Auditors and those of the Board of Directors.
During the course of this activity and on the basis of information obtained from EY
SpA, no omissions, censurable facts, irregularities or other significant developments
were found that would require reporting to the regulatory authorities or mention in
this report.
Finally, the Board of Statutory Auditors notes, as at the date of this Report, the
major global health emergency associated with the COVID-19 epidemic. Italian
authorities have introduced significant limitations on freedom of movement within the
country to contain the contagion, among other things imposing bans on gatherings.
In this context, the Board of Statutory Auditors, in compliance with the above
measures to contain the COVID-19 epidemic, has held its meetings – beginning with
the meeting of February 26, 2020 – exclusively with the use of audio/video
conference systems by all participants, nevertheless ensuring their identification and
the exchange of documentation, in accordance with the provisions of Article 25.4 of
the Bylaws.
The Board of Statutory Auditors also notes that, as permitted under Article 106,
paragraph 4, of Decree Law 18 of March 17, 2020, the Company's Board of Directors
has called the ordinary Shareholders’ Meeting for May 14, 2020 in a single call,
establishing that it will be conducted in a manner that enables shareholders to
participate exclusively through the shareholders’ representative designated by the
Company, to whom shareholders may also confer proxies or sub-proxies pursuant to
Article 135-novies of the Consolidated Law on Financial Intermediation, also in
derogation from the provisions of Article 135-undecies, paragraph 4, of the same
Consolidated Law. The Board of Statutory Auditors will ensure that the rights of the
Shareholders can be exercised on the occasion of the aforementioned Shareholders'
Meeting, within the limits permitted by the special procedures envisaged for holding
the Meeting.
In the coming months, the Board of Statutory Auditors will carry out its oversight
activity, in close coordination with the Board of Directors, to evaluate the impact of
the COVID-19 epidemic on the performance and financial situation of the Company
and the Enel Group.
Based on the oversight activity performed and the information exchanged with the
independent auditors EY SpA, we recommend that you approve the Company’s
financial statements for the year ended December 31, 2019 in conformity with the
proposals of the Board of Directors.
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’
MEETING OF ENEL SPA CALLED TO APPROVE THE FINANCIAL STATEMENTS FOR 2019
(pursuant to Article 153 of Legislative Decree 58/1998 )
*****
ADDENDUM OF APRIL 30, 2020
*****
Dear Shareholders,
With regard to the content of the Report indicated above (in the text approved by the
Board of Statutory Auditors on April 8, 2020) concerning the Board’s supervision of
the process of preparing the remuneration policy for 2020 (the “Remuneration
Policy”), we inform you that we attended the meeting of the Nomination and
Compensation Committee of Enel SpA held on April 28 and 29, 2020 and at the
subsequent meeting of the Board of Directors held on April 29, 2020 in which certain
elements of the policy were reviewed.
More specifically, at the meeting of April 29, 2020 the Board of Directors, acting on a
proposal of the Nomination and Compensation Committee, decided to modify a
number of aspects of the Remuneration Policy, enhancing, in particular, certain
sustainability objectives to which the short-term variable component of the
remuneration of the Chief Executive Officer/General Manager of Enel SpA and the
long-term variable component of the remuneration of the top management of the
Enel Group are linked.
The Board also verified that these amendments, which involved documents already
published in view of the Ordinary Shareholders’ Meeting convened on May 14, 2020
in a single call, were disclosed to investors by means of a press release published
promptly by the Company.
Rome, April 30, 2020
The Board of Statutory Auditors
____________________
Barbara Tadolini - Chair
348
Consolidated Annual Report 2019
REPORT OF THE BOARD OF STATUTORY AUDITORS TO THE SHAREHOLDERS’
MEETING OF ENEL SPA CALLED TO APPROVE THE FINANCIAL STATEMENTS FOR 2019
(pursuant to Article 153 of Legislative Decree 58/1998 )
ADDENDUM OF APRIL 30, 2020
*****
*****
Dear Shareholders,
With regard to the content of the Report indicated above (in the text approved by the
Board of Statutory Auditors on April 8, 2020) concerning the Board’s supervision of
the process of preparing the remuneration policy for 2020 (the “Remuneration
Policy”), we inform you that we attended the meeting of the Nomination and
Compensation Committee of Enel SpA held on April 28 and 29, 2020 and at the
subsequent meeting of the Board of Directors held on April 29, 2020 in which certain
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
elements of the policy were reviewed.
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
More specifically, at the meeting of April 29, 2020 the Board of Directors, acting on a
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
proposal of the Nomination and Compensation Committee, decided to modify a
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
number of aspects of the Remuneration Policy, enhancing, in particular, certain
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
sustainability objectives to which the short-term variable component of the
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
remuneration of the Chief Executive Officer/General Manager of Enel SpA and the
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
Il Collegio Sindacale svolgerà nei prossimi mesi la propria attività di vigilanza in stretto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
coordinamento con il Consiglio di Amministrazione, per verificare gli impatti economici
dal Consiglio di Amministrazione.
long-term variable component of the remuneration of the top management of the
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
e finanziari per la Società e il Gruppo Enel determinati dall’epidemia da COVID-19.
Enel Group are linked.
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
Il Collegio Sindacale, a seguito dell’attività di vigilanza svolta e in base a quanto emerso
The Board also verified that these amendments, which involved documents already
dal Consiglio di Amministrazione.
Roma, 8 aprile 2020
nello scambio di dati e informazioni con la Società di revisione EY S.p.A., Vi propone di
Il Collegio Sindacale
published in view of the Ordinary Shareholders’ Meeting convened on May 14, 2020
approvare il Bilancio della Società al 31 dicembre 2019 in conformità a quanto proposto
in a single call, were disclosed to investors by means of a press release published
dal Consiglio di Amministrazione.
Il Collegio Sindacale
Roma, 8 aprile 2020
promptly by the Company.
Roma, 8 aprile 2020
Il Collegio Sindacale
Rome, April 30, 2020
Rome, April 8, 2020 The Board of Statutory Auditors
The Board of Statutory Auditors
_____________
Dott.ssa Barbara Tadolini Presidente
____________________
_____________
____________________
Dott.ssa Barbara Tadolini Presidente
Barbara Tadolini - Chair
Barbara Tadolini - Chairman
_____________
Dott.ssa Barbara Tadolini Presidente
____________________
____________________
____________________
Avv. Romina Guglielmetti – Sindaco
Romina Guglielmetti - Auditor
Avv. Romina Guglielmetti – Sindaco
____________________
Avv. Romina Guglielmetti – Sindaco
____________________
Claudio Sottoriva - Auditor
____________________
____________________
____________________
Prof. Claudio Sottoriva – Sindaco
Prof. Claudio Sottoriva – Sindaco
Prof. Claudio Sottoriva – Sindaco
13
13
13
Reports
13
349
Report of the Audit Firm on the 2019
consolidated financial statements
of the Enel Group
Enel S.p.A.
Consolidat ed financial st at ement s as at December 31, 2019
Independent audit or’s report pursuant t o art icle 14 of
Legislat ive Decree n. 39, dat ed 27 J anuary 2010, and art icle
10 of EU Regulat ion n. 537/ 2014
350
EY S.p.A.
Via Lombardia, 31
00187 Roma
Tel: +39 06 324751
Fax: +39 06 324755504
ey.com
Independent auditor’s repor t pursuant t o art icle 14 of Legislat ive
Decree n. 39, dat ed 27 J anuary 2010 and ar t icle 10 of EU Regulat ion
n. 537/ 2014
(Translat ion from t he original It alian t ext )
To the Shareholders of
Enel S.p.A.
Opinion
38/ 2005.
Basis for Opinion
Report on t he Audit of t he Consolidat ed Financial Stat ement s
We have audited the consolidated financial statements of Enel Group (the Group), which comprise the
balance sheet as at December 31, 2019, the income statement, the statement of comprehensive
income, the statement of changes in shareholders’ equity the statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the consolidated financial statements give a t rue and fair view of the financial position
of the Group as at December 31, 2019, and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards as adopted by the
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n.
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Enel
S.p.A. in accordance with the regulations and standards on ethics and independence applicable to
audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key Audit Mat t ers
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
EY S.p.A.
Sede Legale: Via Lombar dia, 31 - 00187 Roma
Capit ale Sociale Euro 2.525.000,00 i.v.
Iscrit t a alla S.O. del Regist ro delle Impr ese presso la C.C.I.A.A. di Roma
Codice fiscale e numer o di iscr izione 00434000584 - numer o R.E.A. 250904
P.IVA 00891231003
Iscrit ta all’Albo Speciale delle societ à di r evisione
Consob al pr ogressivo n. 2 deliber a n.10831 del 16/ 7/ 1997
A member firm of Er nst & Young Global Limit ed
Iscrit ta al Regist ro Revisori Legali al n. 70945 Pubblicat o sulla G.U. Suppl. 13 - IV Ser ie Speciale del 17/ 2/ 1998
Consolidated Annual Report 2019 EY S.p.A.
Via Lombardia, 31
00187 Roma
Tel: +39 06 324751
Fax: +39 06 324755504
ey.com
EY S.p.A.
Via Lombardia, 31
00187 Roma
Tel: +39 06 324751
Fax: +39 06 324755504
ey.com
Independent auditor’s repor t pursuant t o art icle 14 of Legislat ive
Decree n. 39, dat ed 27 J anuary 2010 and ar t icle 10 of EU Regulat ion
n. 537/ 2014
(Translat ion from t he original It alian t ext )
Independent auditor’s repor t pursuant t o art icle 14 of Legislat ive
Decree n. 39, dat ed 27 J anuary 2010 and ar t icle 10 of EU Regulat ion
To the Shareholders of
n. 537/ 2014
Enel S.p.A.
(Translat ion from t he original It alian t ext )
Report on t he Audit of t he Consolidat ed Financial Stat ement s
To the Shareholders of
Enel S.p.A.
Opinion
We have audited the consolidated financial statements of Enel Group (the Group), which comprise the
Report on t he Audit of t he Consolidat ed Financial Stat ement s
balance sheet as at December 31, 2019, the income statement, the statement of comprehensive
income, the statement of changes in shareholders’ equity the statement of cash flows for the year
then ended, and notes to the consolidated financial statements, including a summary of significant
Opinion
accounting policies.
We have audited the consolidated financial statements of Enel Group (the Group), which comprise the
balance sheet as at December 31, 2019, the income statement, the statement of comprehensive
In our opinion, the consolidated financial statements give a t rue and fair view of the financial position
income, the statement of changes in shareholders’ equity the statement of cash flows for the year
of the Group as at December 31, 2019, and of its financial performance and its cash flows for the
then ended, and notes to the consolidated financial statements, including a summary of significant
year then ended in accordance with International Financial Reporting Standards as adopted by the
accounting policies.
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n.
38/ 2005.
Basis for Opinion
Basis for Opinion
In our opinion, the consolidated financial statements give a t rue and fair view of the financial position
of the Group as at December 31, 2019, and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards as adopted by the
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n.
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
38/ 2005.
Audit of the Consolidated Financial Statements section of our report. We are independent of the Enel
S.p.A. in accordance with the regulations and standards on ethics and independence applicable to
audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained
We conducted our audit in accordance with International Standards on Auditing (ISA Italia). Our
is sufficient and appropriate to provide a basis for our opinion.
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the Enel
S.p.A. in accordance with the regulations and standards on ethics and independence applicable to
audits of financial statements under Italian Laws. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Mat t ers
Key Audit Mat t ers
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
EY S.p.A.
Sede Legale: Via Lombar dia, 31 - 00187 Roma
Capit ale Sociale Euro 2.525.000,00 i.v.
Iscrit ta alla S.O. del Regist ro delle Impr ese presso la C.C.I.A.A. di Roma
Codice fiscale e numer o di iscr izione 00434000584 - numer o R.E.A. 250904
P.IVA 00891231003
Iscrit ta al Regist ro Revisori Legali al n. 70945 Pubblicat o sulla G.U. Suppl. 13 - IV Ser ie Speciale del 17/ 2/ 1998
Iscrit ta all’Albo Speciale delle societ à di r evisione
Consob al pr ogressivo n. 2 deliber a n.10831 del 16/ 7/ 1997
A member firm of Er nst & Young Global Limit ed
EY S.p.A.
Sede Legale: Via Lombar dia, 31 - 00187 Roma
Capit ale Sociale Euro 2.525.000,00 i.v.
Iscrit ta alla S.O. del Regist ro delle Impr ese presso la C.C.I.A.A. di Roma
Codice fiscale e numer o di iscr izione 00434000584 - numer o R.E.A. 250904
P.IVA 00891231003
Iscrit ta al Regist ro Revisori Legali al n. 70945 Pubblicat o sulla G.U. Suppl. 13 - IV Ser ie Speciale del 17/ 2/ 1998
Iscrit ta all’Albo Speciale delle societ à di r evisione
Consob al pr ogressivo n. 2 deliber a n.10831 del 16/ 7/ 1997
Reports
A member firm of Er nst & Young Global Limit ed
351
We identified the following key audit matters:
Key Audit Matt er
Audit Response
Our audit procedures in response to this Key
Audit Matter included, among others:
· Assessment of the impairment process of
non-current assets and related controls
implemented by the Group;
· Assessment of the criteria adopted to
identify the CGUs and the reconciliation of
their carrying amounts to the consolidated
financial statements;
· Assessment of the key assumptions
underlying the Industrial Plan 2020-2024
and relevant future cash flows, including the
comparison with industry data and forecasts;
· Assessment of the consistency of the cash
flow projections for each CGU with the
Indust rial Plan 2020-2024;
· Assessment of IAS 36 accounting
requirements for the reversal of previously
recognized impairment losses;
· Assessment of the management’s ability to
make accurate projections, through the
comparison of the actual results wit h the
previous forecasts.
In performing our procedures, we engaged our
valuation experts in order to verify the
methodologies used in the process, the
mathematical accuracy of the model, the
reasonableness of the long-term growth rates
and the discount rates as well as the results of
the sensitivit y analysis performed by the
management.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the financial
statements relating this Key Audit Matter.
Recoverabilit y of non-current asset s
The consolidated financial statements include,
within the non-current assets balance, Property,
Plant and Equipment for Euro 79.809 million,
Intangible Assets for Euro 19.089 million and
Goodwill for Euro 14.241 million.
The Directors tested for impairment the carrying
values of the Cash Generating Units (CGUs) as of
the balance sheet date, which include goodwill,
intangible assets with indefinite useful lives and
other non-current assets where indication of
impairment were noted.
The process adopted by management and the
methodologies for assessing and determining the
recoverable amount of each CGU are sometimes
based on complex assumptions which, due to
their nature, require the Directors to exercise
their judgment. Such a judgment relates,
primarily, to the cash flow projections deriving
from the Indust rial Plan 2020-2024 as well as
from the determination of the long-term growth
rates and the discount rates applied to these
projections.
In 2019, the Group reported impairment losses
of Euro 4,221 million mainly related to write-
down of carrying values of certain coal-fired
plants in Italy, Spain, Chile and Russia.
In relation to the above, the key assumptions
made by the Directors relate to future economic
trends, including future trends of the electricity
and gas demand and the related expected prices,
the availabilit y of renewable resources as well as
certain assumptions such as inflation, exchange
and interest rates.
Because of the judgment required and the
complexit y of assumptions used to estimate the
recoverable amount of the non-current assets,
we identified this area as a Key Audit Matter.
The disclosures related to the impairment of
non-current assets are included in Note 2.
2
352
Consolidated Annual Report 2019 “ Accounting policies and measurement criteria -
Recoverability of non-financial assets” , Note 16.
“ Property, Plant and Equipment” and Note 21.
“ Goodwill” .
Key Audit Matt er
Audit Response
Revenues from unbilled sale of elect ricit y and
gas
Revenues from sales of electricity and gas to
retail customers are recognized upon delivery
and include, in addition to amounts invoiced
based on periodic meter readings or on the
volumes notified by distributors and
transporters, an estimate of the electricity and
gas delivered during the year but not yet
invoiced. Revenues accrued between the date of
the last meter reading and year-end are based
on estimates of the daily consumption of
customers, primarily determined on their
historical information, adjusted to reflect the
climate factors or other matters that may affect
the estimated consumption.
Because of the complexity of assumptions used
to estimate the revenues from unbilled sale of
elect ricity and gas, we identified this area as a
Key Audit Matter.
The disclosures related to the revenues from
unbilled sale of electricity and gas are included
in Note 2. “ Accounting policies and
measurement criteria – Use of estimates –
Revenue Recognition” .
Our audit procedures in response to this Key
Audit Matter included, among others:
· assessment of the process related to the
recognition of revenues from sales of
elect ricity and gas and related key controls,
including Information Technology controls,
implemented by the entities within the
Group;
· assessment of the algorit hms and data in the
ERP systems of such Group entities, also with
the support of our Information Technology
specialists;
· testing of a sample of data used by
management to determine the accrued
revenues, including, whenever applicable,
the comparison of quantities entered into the
network as made available by transporters
and dist ributors;
· look-back analysis of prior estimates against
actual data subsequently reported.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the financial
statements relating this Key Audit Matter.
3
Reports
353
Key Audit Matt er
Legal proceedings
Audit Response
The Group is involved in several civil,
administ rative and tax disputes arising from
the normal course of business, for which final
outcomes cannot be easily predicted and could
potentially results in significant liabilities.
The assessment of the risks associated with
the litigations is based on complex
assumptions, which, by their nature, require
the use of the Directors’ judgment. Such
judgment relates, primarily, to the assessment
of the uncertainties connected to the
prediction of the outcome of the proceedings
and to the adequacy of the disclosures in the
financial statements; it is also based on the
assessment made by internal and external
legal counsels.
Because of the judgment required, the
materiality of such litigations and the
complexit y of the assessment process, we
identified this area as a Key Audit Matter.
The disclosures related to legal proceedings
are included in Note 2. “ Accounting policies
and measurement criteria – Use of estimates –
Litigation” and Note 52. “ Contingent liabilities
and asset s” .
Our audit procedures in response to this Key
Audit Matter included, among others:
· assessment of the process and relevant
controls implemented to identify legal and
tax litigations, and pending administ rative
proceedings;
· assessment of the assumptions used in the
valuation of potential legal and tax risks
performed by the legal and tax departments
within the Group;
· inquiry with the legal and tax departments
regarding the status of the most significant
disputes and inspection of the key relevant
documentation, also with the support of our
tax and legal experts;
· analysis of the external confirmations
received from the external legal and tax
counsels assisting the Group entities involved
in such disputes, and assessment of the
consistency of the information obtained with
the risk assessment performed by
management and the legal and tax
departments.
Lastly, we reviewed the adequacy of the
disclosures provided in the notes to the financial
statements relating this Key Audit Matter.
4
354
Consolidated Annual Report 2019 Responsibilit ies of Direct ors and Those Charged wit h Governance for t he
Consolidat ed Financial St atement s
The Directors are responsible for the preparation of the consolidated financial statements that give a
true and fair view in accordance with International Financial Reporting Standards as adopted by the
European Union and with the regulations issued for implementing art. 9 of Legislative Decree n.
38/ 2005, and, wit hin the terms provided by the law, for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
The Directors are responsible for assessing the Group’s ability to continue as a going concern and,
when preparing the consolidated financial statements, for the appropriateness of the going concern
assumption, and for appropriate disclosure thereof. The Directors prepare the consolidated financial
statements on a going concern basis unless they either intend to liquidate the Parent Company Enel
S.p.A. or to cease operations, or have no realistic alternative but to do so.
The statutory audit committee (“ Collegio Sindacale” ) is responsible, within the terms provided by the
law, for overseeing the Group’s financial reporting process.
Audit or’s Responsibilit ies for t he Audit of t he Consolidat ed Financial St atement s
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(ISA Italia) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with International Standards on Auditing (ISA Italia), we have
exercised professional judgment and maintained professional skepticism throughout the audit. In
addition:
· we have identified and assessed the risks of material misstatement of the consolidated financial
statements, whether due to fraud or error, designed and performed audit procedures responsive
to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;
· we have obtained an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control;
· we have evaluated the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Directors;
· we have concluded on the appropriateness of Directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to consider this matter in forming our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
5
Reports
355
events or conditions may cause the Group to cease to continue as a going concern;
· we have evaluated the overall presentation, st ructure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
· we have obtained sufficient appropriate audit evidence regarding the financial information of the
entities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We have communicated with those charged wit h governance, identified at an appropriate level as
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We have provided those charged with governance with a statement that we have complied wit h the
ethical and independence requirements applicable in Italy, and we have communicated with them all
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged wit h governance, we have determined those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We have described these matters in our auditor’s report.
Addit ional informat ion pursuant t o art icle 10 of EU Regulat ion n. 537/ 14
The shareholders of Enel S.p.A., in the general meeting held on April 29, 2011, engaged us to
perform the audits of the consolidated financial statements for each of the years ending December
31, 2011 to December 31, 2019.
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU
Regulation n. 537/ 2014, and that we have remained independent of the Group in conducting the
audit.
We confirm that the opinion on the consolidated financial statements included in this report is
consistent with the content of the additional report to the audit committee (Collegio Sindacale) in
their capacity as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/ 2014.
356
6
Consolidated Annual Report 2019 events or conditions may cause the Group to cease to continue as a going concern;
· we have evaluated the overall presentation, st ructure and content of the consolidated financial
statements, including the disclosures, and whether the consolidated financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
· we have obtained sufficient appropriate audit evidence regarding the financial information of the
entities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We have communicated with those charged wit h governance, identified at an appropriate level as
required by ISA Italia, regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
safeguards.
We have provided those charged with governance with a statement that we have complied wit h the
ethical and independence requirements applicable in Italy, and we have communicated with them all
matters that may reasonably be thought to bear on our independence, and where applicable, related
From the matters communicated with those charged wit h governance, we have determined those
matters that were of most significance in the audit of the financial statements of the current period
and are therefore the key audit matters. We have described these matters in our auditor’s report.
Addit ional informat ion pursuant to art icle 10 of EU Regulat ion n. 537/ 14
The shareholders of Enel S.p.A., in the general meeting held on April 29, 2011, engaged us to
perform the audits of the consolidated financial statements for each of the years ending December
31, 2011 to December 31, 2019.
We declare that we have not provided prohibited non-audit services, referred to article 5, par. 1, of EU
Regulation n. 537/ 2014, and that we have remained independent of the Group in conducting the
audit.
We confirm that the opinion on the consolidated financial statements included in this report is
consistent with the content of the additional report to the audit committee (Collegio Sindacale) in
their capacity as audit committee, prepared pursuant to article 11 of the EU Regulation n. 537/ 2014.
Report on compliance wit h ot her legal and regulat ory requirement s
Opinion pursuant to art icle 14, paragraph 2, subparagraph e), of Legislat ive
Decree n. 39 dated 27 J anuary 2010 and of art icle 123-bis, paragraph 4, of
Legislat ive Decree n. 58, dat ed 24 February 1998
The Directors of Enel S.p.A. are responsible for the preparation of the Report on Operations and of
the Report on Corporate Governance and Ownership Structure of Group Enel as at December 31,
2019, including their consistency wit h the related consolidated financial statements and their
compliance with the applicable laws and regulations.
We have performed the procedures required under audit standard SA Italia n. 720B, in order to
express an opinion on the consistency of the Report on Operations and of specific information
included in the Report on Corporate Governance and Ownership Structure as provided for by article
123-bis, paragraph 4, of Legislative Decree n. 58, dated 24 February 1998, with the consolidated
financial statements of Enel Group as at December 31, 2019 and on their compliance wit h the
applicable laws and regulations, and in order to assess whether they contain material misstatements.
In our opinion, the Report on Operations and the above mentioned specific information included in
the Report on Corporate Governance and Ownership Structure are consistent wit h the consolidated
financial statements of Enel Group as at December 31, 2019 and comply with the applicable laws and
regulations.
With reference to the statement required by art. 14, paragraph 2, subparagraph e), of Legislative
Decree n. 39, dated 27 January 2010, based on our knowledge and understanding of the entity and
its environment obtained through our audit, we have no matters to report.
St at ement pursuant t o art icle 4 of Consob Regulat ion implement ing Legislat ive
Decree n. 254, dat ed 30 December 2016
The Directors of Enel S.p.A. are responsible for the preparation of the non-financial information
pursuant to Legislative Decree n. 254, dated 30 December 2016. We have verified that non-financial
information has been approved by Directors.
Pursuant to art icle 3, paragraph 10, of Legislative Decree n. 254, dated 30 December 2016, such
non-financial information are subject to a separate compliance report signed by us.
Rome, April 8, 2020
EY S.p.A.
Signed by: Massimo Antonelli, Auditor
This report has been translated into the English language solely for the convenience of
international readers.
6
7
Reports
357
Attachments
Subsidiaries, associates and other significant
equity investments of the Enel Group
at December 31, 2019
In compliance with CONSOB Notice no. DEM/6064293 of July
The following information is included for each company: name,
28, 2006 and Article 126 of CONSOB Resolution no. 11971 of
registered office, share capital, currency in which share capital
May 14, 1999, a list of subsidiaries and associates of Enel SpA
is denominated, activity, method of consolidation, Group com-
at December 31, 2019, pursuant to Article 2359 of the Italian
panies that have a stake in the company and their respective
Civil Code, and of other significant equity investments is provi-
ownership share, and the Group’s ownership share.
ded below. Enel has full title to all investments.
358
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Parent Company
Enel SpA
Rome
Italy
10,166,679,946.00
EUR
Holding
Holding
Subsidiaries
(Cataldo) Hydro
Power Associates
Albany
USA
4814 Investments
LLC
Andover
USA
-
-
USD
USD
Abc Solar 10 SpA
Santiago
Chile
1,000,000.00
CLP
Abc Solar 2 SpA
Santiago
Chile
1,000,000.00
CLP
Electricity generation
from renewable
resources
Equity
Hydro Development
Group Acquisition
LLC
Pyrites Hydro LLC
50.00%
50.00%
50.00%
Electricity generation
from renewable
resources
Plant construction and
electricity generation
from renewable
resources
Plant construction and
electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Enel Green Power
Chile Ltda
100.00% 61.93%
Line-by-line
Enel Green Power
Chile Ltda
100.00% 61.93%
Aced Renewables
Hidden Valley (RF)
(Pty) Ltd
Activation Energy
Limited
Adams Solar PV
Project Two (RF)
(Pty) Ltd
Gauteng
Republic of
South Africa
1,000.00
ZAR
Electricity generation
and sale from renewable
resources
Line-by-line
Dublin
Ireland
100,000.00
EUR
Renewable energy
Line-by-line
Gauteng
Republic of
South Africa
10,000,000.00
ZAR
Enel Green Power
RSA 2 (RF) (Pty) Ltd
EnerNOC Ireland
Limited
Enel Green Power
RSA (Pty) Ltd
60.00% 60.00%
100.00% 100.00%
60.00% 60.00%
Adria Link Srl
Gorizia
Aero-tanna Srl
Rome
Italy
Italy
300,297.00
EUR
Equity
Enel Produzione SpA
50.00% 50.00%
15,000.00
EUR
Renewable energy
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Agassiz Beach LLC Minneapolis
USA
-
USD
Rome
Italy
10,000.00
EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Line-by-line
Enel Green Power
Solar Energy Srl
80.00% 80.00%
Line-by-line
Electricity generation
from renewable
resources
Design, construction and
operation of merchant
lines
Barcelona
Spain
793,340.00
EUR
Design and services
-
Aguilón 20 SA
Zaragoza
Spain
2,682,000.00
EUR
Alba Energia Ltda
Niterói
Brazil
16,045,169.00
BRL
Albany Solar LLC
Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Development, design,
construction and
operation of plants
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
Enel Green Power
España SL
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Aurora Distributed
Solar LLC
14.29% 10.01%
51.00% 35.75%
100.00%
0.00%
100.00%
100.00% 51.00%
Agatos Green Power
Trino Srl
Agrupación
Acefhat AIE
Alliance SA
Managua
Nicaragua
6,180,150.00
NIO
-
Equity
Ufinet Latam SLU
49.90% 10.27%
Almeyda Solar SpA
Santiago
Chile
1,736,965,000.00
CLP
Almussafes
Servicios
Energéticos SL
Alpe Adria Energia
Srl
Barcelona
Spain
3,010.00
EUR
Udine
Italy
900,000.00
EUR
Electricity generation
from renewable
resources
Management and
maintenance of power
plants Electricity sale
Design, construction and
operation of merchant
lines
Line-by-line
Enel Green Power
Chile Ltda
100.00% 61.93%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Line-by-line
Enel Produzione SpA
50.00% 50.00%
359
Attachments Ampla Energia e
Serviços SA
Anea - Agenzia
napoletana
per l’energia e
l’ambiente
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Alta Farms Wind
Project II LLC
Andover
USA
1.00
USD
Alvorada Energia SA
Niterói
Brazil
21,017,415.92
BRL
Niterói
Brazil
2,498,230,386.65
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale
Line-by-line
Tradewind Energy
Inc.
Enel Green Power
Brasil Participações
Ltda
100.00% 100.00%
100.00% 100.00%
Electricity generation,
transmission and
distribution
Line-by-line
Enel Brasil SA
99.73%
57.11%
Naples
Italy
418,330.12
EUR
-
-
e-distribuzione SpA
12.96% 12.96%
Annandale Solar LLC Minnesota
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Apiacás Energia SA
Niterói
Brazil
14,216,846.33
BRL
Electricity sale
Line-by-line
Aquenergy Systems
LLC
Greenville
USA
Andover
USA
-
1.00
USD
USD
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Equity
Aquilla Wind Project
LLC
Aragonesa de
Actividades
Energéticas SA
Aranort Desarrollos
SL
Asociación
Nuclear Ascó-
Vandellós II AIE
Athonet France
SASU
Athonet Srl
Athonet UK Ltd
Vandellos
L’Hospitalet de
l’Infant
Paris
Trieste
Teruel
Spain
60,100.00
EUR
Electricity sale
Line-by-line
Madrid
Spain
3,010.00
EUR
Wind plants
Line-by-line
Spain
19,232,400.00
EUR
Management and
maintenance of power
plants
Proportional
France
50,000.00
EUR
ICT
Italy
6,892,757.00
EUR
-
Battle, East
Sussex
United
Kingdom
1.00
1.00
GBP
Telecommunications
USD
Any legal activity
-
-
-
-
Aurora Distributed
Solar LLC
Enel Green Power
Brasil Participações
Ltda
EGPNA REP Hydro
Holdings LLC
100.00% 51.00%
100.00% 100.00%
100.00% 50.00%
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SL
Endesa Generación
SA
100.00% 70.10%
100.00% 70.10%
85.41% 59.87%
Athonet Srl
100.00% 16.00%
Enel X Srl
16.00% 16.00%
Athonet Srl
100.00% 16.00%
Athonet Srl
100.00% 16.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Athonet USA Inc.
Wilmington
USA
Atwater Solar LLC
Wilmington
USA
Aurora Distributed
Solar LLC
Wilmington
USA
Aurora Land
Holdings LLC
Aurora Solar
Holdings LLC
Aurora Wind
Project LLC
Wilmington
USA
Wilmington
USA
Andover
USA
Autumn Hills LLC
Wilmington
USA
-
-
-
-
1.00
-
Avikiran Energy India
Private Limited
Gurugram
India
100,000.00
Avikiran Solar India
Private Limited
New Delhi
India
100,000.00
360
USD
USD
USD
USD
USD
USD
INR
INR
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Line-by-line
Aurora Solar
Holdings LLC
51.00% 51.00%
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Chi Minnesota Wind
LLC
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
51.00% 51.00%
100.00% 100.00%
100.00% 100.00%
Consolidated Annual Report 2019
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Avikiran Surya India
Private Limited
Gurugram
India
100,000.00
INR
Electricity generation
and sale from renewable
resources
Line-by-line
Avikiran Vayu India
Private Limited
Gurugram
India
100,000.00
INR
Electricity generation,
distribution and sale
Line-by-line
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
100.00% 100.00%
100.00% 100.00%
Azure Sky Solar
Project LLC
Azure Sky Wind
Project LLC
Andover
USA
Andover
USA
1.00
1.00
USD
USD
Baikal Enterprise SL
Baleares Energy SL
Palma de
Mallorca
Palma de
Mallorca
Spain
3,006.00
EUR
Spain
4,509.00
EUR
Barnet Hydro
Company LLC
Burlington
USA
Barnwell County
Solar Project LLC
Andover
USA
-
-
USD
USD
Baylio Solar SLU
Seville
Spain
3,000.00
EUR
Beaver Falls Water
Power Company
Wilmington
USA
Beaver Valley
Holdings LLC
Beaver Valley
Power Company
LLC
Wilmington
USA
Wilmington
USA
Belomechetskaya
WPS
Moscow
Russian
Federation
-
-
-
USD
USD
USD
Rome
Italy
100,000.00
EUR
Albany
USA
-
USD
Gurugram
India
10,000,000.00
BLP Vayu (Project 2)
Private Limited
Gurugram
India
45,000,000.00
New Delhi
India
5,000,000.00
Bioenergy Casei
Gerola Srl
Black River Hydro
Assoc.
BLP Vayu
(Project 1) Private
Limited
BLP Wind Project
(Amberi) Private
Limited
Blue Star Wind
Project LLC
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Line-by-line
AFS
Line-by-line
Enel Green Power
España SL
Enel North America
Inc.
Sweetwater
Hydroelectric LLC
Tradewind Energy
Inc.
100.00% 70.10%
10.00%
90.00%
100.00%
100.00% 100.00%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Line-by-line
Beaver Valley
Holdings LLC
67.50% 67.50%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Equity
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Equity
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
INR
INR
INR
EGPNA REP Hydro
Holdings LLC
Enel Green Power
Rus Limited Liability
Company
Enel Green Power
SpA
(Cataldo) Hydro
Power Associates
Enel North America
Inc.
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
100.00% 50.00%
100.00% 100.00%
100.00% 100.00%
75.00%
25.00%
62.50%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
361
3,010,000.00
RUB
Renewables
Line-by-line
Attachments
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
BluRe MA
Manternach
Luxembourg
6,400,000.00
EUR
Insurance
-
Bogaris PV1 SLU
Sevilla
Spain
3,000.00
EUR
Wind plants
Line-by-line
Boiro Energía SA
Boiro
Spain
601,010.00
EUR
Bondia Energia Ltda
Niterói
Brazil
2,950,888.00
BRL
Boott Hydropower
LLC
Boston
USA
-
USD
Bosa del Ebro SL
Zaragoza
Spain
3,010.00
EUR
Bp Hydro Associates
Boise
USA
Salt Lake City
USA
-
-
Andover
USA
1.00
Andover
USA
Andover
USA
-
-
Electricity generation
from renewable
resources
Equity
Plant development,
design, construction and
operation
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation,
transportation, sale and
trading
Equity
Line-by-line
Line-by-line
Line-by-line
Line-by-line
USD
USD
USD
USD
USD
Quito
Ecuador
30,290.00
USD
-
Equity
Topeka
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Buffalo Jump LP
Alberta
Canada
10.00
CAD
Holding
Line-by-line
Buffalo Spirit Wind
Project LLC
Andover
USA
1.00
USD
Bp Hydro Finance
Partnership
Bravo Dome Wind
Project LLC
Brazoria County
Solar Project LLC
Brazoria West Solar
Project LLC
Broadband
Comunicaciones SA
Buffalo Dunes Wind
Project LLC
Australia
1,000.00
AUD
Australia
100.00
AUD
Australia
100.00
AUD
Australia
1,000.00
AUD
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Renewables
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Equity
Equity
Equity
Equity
Australia
-
AUD
Renewables
Equity
Australia
1,000.00
AUD
Australia
100.00
AUD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Equity
Bungala One Finco
(Pty) Ltd
Barangaroo,
Sydney
Bungala One
Operation Holding
Trust
Bungala One
Operations Holding
(Pty) Ltd
Barangaroo,
Sydney
Barangaroo,
Sydney
Bungala One
Operations (Pty) Ltd
Barangaroo,
Sydney
Bungala One
Operations Trust
Barangaroo,
Sydney
Bungala One
Property (Pty) Ltd
Barangaroo,
Sydney
Bungala One
Property Holding
(Pty) Ltd
Barangaroo,
Sydney
362
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Slovenské elektrárne
AS
Enel Green Power
España SL
5.00%
1.65%
100.00% 70.10%
Enel Green Power
España SL
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
EGPNA REP Hydro
Holdings LLC
Enel Green Power
España SL
Chi Idaho LLC
Enel North America
Inc.
Bp Hydro Associates
Enel North America
Inc.
40.00% 28.04%
100.00%
0.00%
100.00%
100.00% 50.00%
51.00% 35.75%
68.00%
32.00%
75.92%
24.08%
100.00%
100.00%
Tradewind Energy
Inc.
Ufinet Ecuador
Ufiec SA
Ufinet Latam SLU
EGPNA
Development
Holdings LLC
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Tradewind Energy
Inc.
Bungala One
Property (Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
Bungala One
Operations Holding
(Pty) Ltd
Bungala One
Operations Holding
(Pty) Ltd
Bungala One
Property Holding
(Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
100.00% 100.00%
99.99%
0.01%
20.60%
75.00% 75.00%
0.10%
99.90%
100.00%
100.00% 100.00%
100.00% 51.00%
50.00% 50.00%
51.00% 51.00%
100.00% 51.00%
100.00% 51.00%
100.00% 51.00%
51.00% 51.00%
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Bungala One
Property Holding
Trust
Barangaroo,
Sydney
Australia
100.00
AUD
Bungala One
Property Trust
Barangaroo,
Sydney
Australia
Bungala Two Finco
(Pty) Ltd
Barangaroo,
Sydney
Australia
Bungala Two
Operations Holding
(Pty) Ltd
Bungala Two
Operations Holding
Trust
Barangaroo,
Sydney
Barangaroo,
Sydney
Australia
Australia
Bungala Two
Operations (Pty) Ltd
Barangaroo,
Sydney
Australia
Bungala Two
Operations Trust
Barangaroo,
Sydney
Australia
Bungala Two
Property Holding
(Pty) Ltd
Bungala Two
Property Holding
Trust
Barangaroo,
Sydney
Barangaroo,
Sydney
Australia
Australia
Bungala Two
Property (Pty) Ltd
Barangaroo,
Sydney
Australia
-
-
-
-
-
-
-
-
-
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Equity
Equity
Equity
AUD
AUD
AUD
AUD
Renewables
Equity
AUD
Renewables
Equity
AUD
Renewables
Equity
AUD
Electricity generation
from renewable
resources
Equity
AUD
Renewables
Equity
AUD
Renewables
Equity
Bungala Two
Property Trust
Barangaroo,
Sydney
Australia
1.00
AUD
Renewables
Equity
Gauteng
Republic of
South Africa
100.00
ZAR
Andover
USA
Overland Park
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Business Venture
Investments 1468
(Pty) Ltd
Canastota Wind
Power LLC
Caney River Wind
Project LLC
Carbopego -
Abastecimientos e
Combustíveis SA
Cascade Energy
Storage LLC
Castle Rock Ridge
Limited Partnership
Catalana d’Iniciatives
SCR SA
CCP.RO Bucharest
SA
Lisbon
Portugal
50,000.00
EUR
Fuel supply
Equity
Wilmington
USA
-
USD
Renewables
Line-by-line
Castiblanco Solar SL
Madrid
Spain
3,000.00
EUR
Photovoltaic
Line-by-line
Calgary
Canada
-
CAD
Electricity generation
from renewable
resources
Line-by-line
Barcelona
Spain
30,862,800.00
EUR
Holding
Bucharest
Romania
79,800,000.00
RON
Financial
Cdec - Sic Ltda
Santiago
Chile
709,783,206.00
CLP
-
Cedar Run Wind
Project LLC
Celg Distribuição SA
- Celg D
Andover
USA
1.00
USD
Goiás
Brazil
5,075,679,362.52
BRL
Electricity generation
and sale from renewable
resources
Electricity distribution
and sale
-
-
-
Line-by-line
Line-by-line
Enel Brasil SA
99.93% 57.22%
363
Enel Green Power
Bungala (Pty) Ltd
Bungala One
Property Holding
(Pty) Ltd
Bungala Two
Property (Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
Bungala Two
Operations Holding
(Pty) Ltd
Bungala Two
Operations Holding
(Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
Enel Green Power
Bungala (Pty) Ltd
Bungala Two
Property Holding
(Pty) Ltd
Bungala Two
Property Holding
(Pty) Ltd
50.00% 50.00%
100.00% 51.00%
100.00% 51.00%
51.00% 51.00%
50.00% 50.00%
100.00% 51.00%
100.00% 51.00%
51.00% 51.00%
50.00% 50.00%
100.00% 51.00%
100.00% 51.00%
Rocky Caney Wind
LLC
Endesa Generación
Portugal SA
Endesa Generación
SA
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Green Power
España SL
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Endesa Red
SA (Sociedad
Unipersonal)
100.00% 20.00%
0.01%
49.99%
35.05%
100.00% 100.00%
100.00% 70.10%
0.10%
99.90%
100.00%
0.94%
0.66%
Enel Romania SA
9.52%
9.52%
Empresa Eléctrica
Panguipulli SA
Tradewind Energy
Inc.
6.00%
3.72%
100.00% 100.00%
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Central Dock Sud SA Buenos Aires
Argentina
1,231,270,567.54
ARS
Salvador
Brazil
4,859,739.00
BRL
Electricity generation,
transmission and
distribution
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Argentina SA
Inversora Dock
Sud SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
0.25%
69.99%
100.00%
0.00%
23.05%
100.00%
Niterói
Brazil
758,950.00
BRL
Energy services
Line-by-line
Enel X Brasil SA
100.00% 57.26%
Fortaleza
Brazil
151,940,000.00
BRL
Thermal generation plantsLine-by-line
Enel Brasil SA
100.00% 57.26%
Seville
Madrid
Spain
Spain
364,213.34
EUR
Plant operation
595,000.00
EUR
Plant operation
Buenos Aires
Argentina
500,000.00
ARS
Electrical facilities
construction
Equity
Equity
Equity
Madrid
Spain
-
EUR
Plant operation
Equity
Enel Green Power
España SL
Endesa Generación
SA
Central Dock Sud SA
Enel Generación
Costanera SA
Enel Generación El
Chocón SA
Endesa Generación
SA
Nuclenor SA
Slovenské elektrárne
AS
33.30% 23.34%
33.33% 23.36%
6.40%
1.30%
14.53%
33.20%
23.57%
0.69%
16.76%
100.00% 33.00%
Centrum Pre Vedu A
Vyskum Sro
Kalná Nad
Hronom
Slovakia
6,639.00
EUR
Research and
development in sciences
and engineering
Equity
Milan
Italy
8,550,000.00
EUR
Testing, inspection and
certification services,
engineering and
consulting services
Equity
Enel SpA
42.70% 42.70%
Wilmington
USA
1.00
USD
Electricity generation
from renewable
resources
Line-by-line
Central Geradora
Fotovoltaica Bom
Nome Ltda
Central Geradora
Fotovoltaica São
Francisco Ltda
Central Geradora
Termelétrica
Fortaleza SA
Central Hidráulica
Güejar-Sierra SL
Central Térmica de
Anllares AIE
Central Vuelta de
Obligado SA
Centrales Nucleares
Almaraz-Trillo AIE
CESI - Centro
Elettrotecnico
Sperimentale Italiano
Giacinto Motta SpA
Champagne Storage
LLC
Cherokee Falls
Hydroelectric Project
LLC
Cheyenne Ridge
Wind Project LLC
Wilmington
USA
Andover
USA
Chi Black River LLC Wilmington
USA
Chi Idaho LLC
Wilmington
USA
Chi Minnesota
Wind LLC
Wilmington
USA
-
1.00
-
-
-
USD
USD
USD
USD
USD
Chi Operations Inc.
Andover
USA
100.00
USD
Chi Power Inc.
Naples
USA
100.00
USD
Chi Power Marketing
Inc.
Wilmington
USA
100.00
USD
Chi West LLC
San Francisco
USA
100.00
USD
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel North America
Inc.
100.00% 100.00%
100.00% 100.00%
Line-by-line
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Chinango SAC
San Miguel
Peru
295,249,298.00
SOL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Generación
Perú SAA
80.00% 38.30%
364
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Dover
USA
100.00
USD
Holding
Line-by-line
Wilmington
USA
Line-by-line
Chisago Solar LLC
Minnesota
USA
Chisholm View II
Holding LLC
Wilmington
USA
Chisholm View Wind
Project II LLC
Wilmington
USA
Chisholm View Wind
Project LLC
New York
USA
Cimarron Bend
Assets LLC
Wilmington
USA
Wilmington
USA
Cimarron Bend Wind
Holdings I LLC
Cimarron Bend Wind
Holdings II LLC
Cimarron Bend Wind
Holdings LLC
Cimarron Bend Wind
Project I LLC
Wilmington
USA
Cimarron Bend Wind
Project II LLC
Wilmington
USA
Cimarron Bend Wind
Project III LLC
Wilmington
USA
-
-
-
-
-
-
USD
USD
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
-
-
-
-
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Held by
%
holding
Group %
holding
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Line-by-line
Chisholm View II
Holding LLC
51.00% 51.00%
EGPNA REP Wind
Holdings LLC
Cimarron Bend Wind
Project I LLC
Cimarron Bend Wind
Project II LLC
Cimarron Bend Wind
Project III LLC
Enel Kansas LLC
Cimarron Bend Wind
Holdings II LLC
Cimarron Bend Wind
Holdings LLC
Enel North America
Inc.
100.00% 20.00%
49.00%
49.00%
100.00%
1.00%
1.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Line-by-line
Cimarron Bend Wind
Holdings I LLC
100.00% 100.00%
Line-by-line
Cimarron Bend Wind
Holdings I LLC
100.00% 100.00%
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Enel Global
Infrastructure and
Networks Srl
Tradewind Energy
Inc.
3.79%
3.79%
100.00% 100.00%
CivDrone
Haifa
Israel
1,000,000.00
ILS
R&D
-
Clear Sky Wind
Project LLC
Andover
USA
Clinton Farms Wind
Project LLC
Andover
USA
1.00
1.00
USD
USD
Codensa SA ESP
Bogotá
Colombia
13,487,545,000.00
COP
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity distribution
and sale
Line-by-line
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Enel Américas SA
48.30% 27.66%
Cogeneración El
Salto SL
Zaragoza
Cogenio Srl
Rome
Spain
Italy
36,060.73
EUR
Cogeneration of electricity
and heat
Equity
Enel Green Power
España SL
20.00% 14.02%
2,310,000.00
EUR
-
Equity
Enel.si Srl
20.00% 20.00%
Cohuna Solar Farm
(Pty) Ltd
Barangaroo,
Sydney
Australia
100.00
AUD
Electricity generation
from renewable
resources
Line-by-line
Cohuna Solar Farm
Trust
Barangaroo,
Sydney
Australia
Andover
USA
-
1.00
AUD
Renewable energy
Line-by-line
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Cadiz
Spain
600,000.00
EUR
Electricity transmission,
distribution and sale
Equity
Enel Green Power
Cohuna Holdings
(Pty) Ltd
Enel Green Power
Cohuna Trust
Tradewind Energy
Inc.
Endesa Red
SA (Sociedad
Unipersonal)
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
33.50% 23.48%
Rome
Italy
14,730,800.00
EUR
Construction of port
infrastructure
Equity
Enel Produzione
SpA
25.00% 25.00%
Fortaleza
Brazil
808,246,885.77
BRL
Electricity distribution
Line-by-line
Enel Brasil SA
74.05% 42.40%
365
Comanche Crest
Ranch LLC
Comercializadora
Eléctrica de Cádiz SA
Compagnia Porto di
Civitavecchia SpA in
liquidation
Companhia
Energética do Ceará
- Coelce
Attachments Compañía de
Transmisión del
Mercosur Ltda -
CTM
Compañía
Energética Veracruz
SAC
Compañía Eólica
Tierras Altas SA
Coneross Power
Corporation Inc.
CONSEL -
Consorzio ELIS
per la formazione
professionale
superiore
Consolidated Hydro
New York LLC
Consolidated Hydro
Southeast LLC
Consolidated
Pumped Storage Inc.
Consorzio Civita in
liquidation
Copenhagen Hydro
LLC
Corporación
Empresarial de
Extremadura SA
Cow Creek Wind
Project LLC
Cranberry Point
Energy Storage LLC
Crucero de Atacama
SpA
Crucero Este Dos
SpA
Crucero Este Tres
SpA
Crucero Este Uno
SpA
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Buenos Aires
Argentina
14,012,000.00
ARS
Electricity generation,
transmission and
distribution
Line-by-line
Enel CIEN SA
Enel SpA
100.00%
0.00%
57.26%
San Miguel
Peru
2,886,000.00
SOL
Hydroelectric projects
Line-by-line
Enel Perú SAC
100.00% 57.26%
Soria
Spain
13,222,000.00
EUR
Wind projects
Equity
Concert Srl
Rome
Italy
10,000.00
EUR
Greenville
USA
110,000.00
USD
Product, plant and
equipment certification
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Compañía Eólica
Tierras Altas SA
Enel Green Power
España SL
Enel Produzione
SpA
Enel North America
Inc.
5.00%
35.63%
26.29%
100.00% 100.00%
100.00% 100.00%
Rome
Italy
51,000.00
EUR
Training
Equity
OpEn Fiber SpA
1.00%
0.50%
Consolidated Hydro
New Hampshire LLC
Wilmington
USA
Wilmington
USA
Wilmington
USA
-
-
-
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Equity
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
81.83% 81.83%
Wilmington
USA
550,000.00
USD
Rome
Italy
156,000.00
EUR
-
-
Enel SpA
33.30% 33.30%
Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Equity
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Badajoz
Spain
44,538,000.00
EUR
Regional development
-
Endesa SA
1.01%
0.71%
Corporación Eólica
de Zaragoza SL
La Puebla de
Alfinden
Spain
271,652.00
EUR
Equity
Enel Green Power
España SL
25.00% 17.53%
Andover
USA
1.00
USD
Line-by-line
100.00
USD
Renewables
Line-by-line
Dover
Santiago
Santiago
Santiago
Santiago
USA
Chile
Chile
Chile
Chile
10,000,000.00
209,755,678.00
273,188,329.00
1,000,000.00
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
CLP
CLP
CLP
CLP
ZAR
Electricity generation
purchase and sale
Electricity generation
purchase and sale
Electricity generation
purchase and sale
Electricity generation
purchase and sale
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Tradewind Energy
Inc.
Enel North America
Inc.
Enel Green Power
del Sur SpA
Enel Green Power
del Sur SpA
Enel Green Power
del Sur SpA
Enel Green Power
del Sur SpA
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Romania Srl
Enel Green Power
SpA
Enel Green Power
España SL
100.00% 100.00%
100.00% 100.00%
100.00% 61.93%
100.00% 61.93%
100.00% 61.93%
100.00% 61.93%
100.00% 100.00%
100.00%
0.00%
100.00%
100.00% 70.10%
Danax Energy (Pty)
Ltd
Sandton
Republic of South
Africa
100.00
De Rock Int’l Srl
Bucharest
Romania
5,629,000.00
RON
Seville
Spain
3,000.00
EUR
Dehesa de los
Guadalupes Solar
SLU
366
Consolidated Annual Report 2019 Desarrollo de
Fuerzas Renovables
S de RL de Cv
Di.T.N.E. -- Distretto
Tecnologico
Nazionale
sull’Energia -
Società Consortile
a Responsabilità
Limitata
Diamond Vista
Holdings LLC
Diego de Almagro
Matriz SpA
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Dehesa Pv Farm
03 SLU
Dehesa Pv Farm
04 SLU
Depuración
Destilación Reciclaje
SL
Valencia
Valencia
Spain
Spain
3,000.00
EUR
Photovoltaic systems
Line-by-line
3,000.00
EUR
Photovoltaic plants
Line-by-line
Boiro
Spain
600,000.00
EUR
Electricity generation
from renewable
resources
Equity
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
100.00% 70.10%
100.00% 70.10%
40.00% 28.04%
Derivex SA
Bogotá
Colombia
715,292,000.00
COP
Finance
-
Emgesa SA ESP
5.00%
1.39%
Mexico City
Mexico
33,101,350.00
MXN
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
México S de RL
de Cv
Energía Nueva
Energía Limpia
México S de RL
de Cv
99.99%
0.01%
100.00%
Rome
Italy
398,321.50
EUR
Research and
development in natural
sciences and engineering
-
Enel Produzione SpA
1.89%
1.89%
Wilmington
USA
1.00
USD
Holding
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Santiago
Chile
351,604,338.00
CLP
Dietrich Drop LLC
Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Empresa Eléctrica
Panguipulli SA
100.00% 61.93%
Equity
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Distribuidora de
Energía Eléctrica del
Bages SA
Distribuidora
Eléctrica del Puerto
de La Cruz SA
Distrilec Inversora
SA
Dmd Holding AS (in
liquidation)
Dodge Center
Distributed Solar
LLC
Dolores Wind SA
de Cv
Dominica Energía
Limpia SA de Cv
Dorset Ridge Wind
Project LLC
Drift Sand Wind
Holdings LLC
Drift Sand Wind
Project LLC
Barcelona
Spain
108,240.00
EUR
Electricity distribution
and sale
Line-by-line
Santa Cruz de
Tenerife
Spain
12,621,210.00
EUR
Electricity purchase,
transmission and
distribution
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
Hidroeléctrica de
Catalunya SL
Endesa Red
SA (Sociedad
Unipersonal)
55.00%
45.00%
70.10%
100.00% 70.10%
Buenos Aires
Argentina
497,612,021.00
ARS
Holding
Line-by-line
Enel Américas SA
51.50% 29.49%
Trenčín-Zlatovce
Slovakia
199,543,284.87
EUR
Electricity generation
-
Slovenské elektrárne
AS
2.94%
0.97%
Wilmington
USA
-
USD
Mexico City
Mexico
100.00
MXN
Mexico City
Mexico
2,070,600,646.00
MXN
Andover
USA
1.00
Wilmington
USA
Wilmington
USA
-
-
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Line-by-line
Equity
Enel Rinnovabile SA
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
99.00%
1.00%
100.00%
60.80% 20.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Equity
Enel Kansas LLC
50.00% 50.00%
Equity
Drift Sand Wind
Holdings LLC
100.00% 50.00%
E.S.CO. Comuni Srl
Bergamo
Italy
1,000,000.00
EUR
Electricity sale
Line-by-line
YouSave SpA
60.00% 60.00%
Eastwood Solar LLC Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
367
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
E-Distribuţie Banat
SA
E-Distribuţie
Dobrogea SA
E-Distribuţie
Muntenia SA
Madrid
Spain
1,204,540,060.00
EUR
Electricity distribution
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
100.00% 70.10%
Timisoara
Romania
382,158,580.00
RON
Electricity distribution
Line-by-line
Enel SpA
51.00% 51.00%
Constanţa
Romania
280,285,560.00
RON
Electricity distribution
Line-by-line
Enel SpA
51.00% 51.00%
Bucharest
Romania
271,635,250.00
RON
Electricity distribution
Line-by-line
Enel SpA
78.00% 78.00%
e-distribuzione SpA
Rome
Italy
2,600,000,000.00
EUR
Electricity distribution
Line-by-line
Enel SpA
100.00% 100.00%
EF Divesture LLC
Andover
USA
1.00
USD
Efficientya Srl
Bergamo
Italy
100,000.00
EUR
EGP BioEnergy Srl
Rome
Italy
1,000,000.00
EUR
Electricity generation
and sale from renewable
resources
Testing, inspection and
certification services,
engineering and
consulting services
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Equity
YouSave SpA
50.00% 50.00%
Line-by-line
Enel Green Power
Puglia Srl
100.00% 100.00%
EGP Geronimo
Holding Company
Inc.
Wilmington
USA
1,000.00
USD
Holding
Line-by-line
Enel North America
Inc.
100.00% 100.00%
EGP HoldCo 1 LLC
Andover
EGP HoldCo 10 LLC
Andover
EGP HoldCo 11 LLC
Andover
EGP HoldCo 12 LLC
Andover
EGP HoldCo 13 LLC
Andover
EGP HoldCo 14 LLC
Andover
EGP HoldCo 15 LLC
Andover
EGP HoldCo 16 LLC
Andover
EGP HoldCo 17 LLC
Andover
EGP HoldCo 18 LLC
Andover
EGP HoldCo 2 LLC
Andover
EGP HoldCo 3 LLC
Andover
EGP HoldCo 4 LLC
Andover
EGP HoldCo 5 LLC
Andover
EGP HoldCo 6 LLC
Andover
EGP HoldCo 7 LLC
Andover
EGP HoldCo 8 LLC
Andover
EGP HoldCo 9 LLC
Andover
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
USD
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
Mexico City
Mexico
100.00
MXN
Renewables
Line-by-line
Enel Rinnovabile SA
de Cv
Hidroelectricidad
Del Pacífico S de RL
de Cv
Enel North America
Inc.
Enel North America
Inc.
99.00%
1.00%
100.00%
100.00% 100.00%
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
-
-
-
USD
Renewables
Line-by-line
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
EGP Magdalena
Solar SA de Cv
EGP Nevada Power
LLC
EGP Salt Wells Solar
LLC
Wilmington
USA
Wilmington
USA
EGP San Leandro
Microgrid I LLC
Wilmington
USA
368
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Wilmington
USA
Wilmington
USA
1.00
Los Angeles
USA
Wilmington
USA
EGP Solar 1 LLC
Andover
USA
EGP Stillwater Solar
LLC
EGP Stillwater Solar
Pv II LLC
EGP Timber Hills
Project LLC
EGPNA
Development
Holdings LLC
EGPNA Hydro
Holdings LLC
EGPNA Preferred
Holdings II LLC
EGPNA Preferred
Wind Holdings LLC
EGPNA Project
HoldCo 1 LLC
EGPNA Project
HoldCo 2 LLC
EGPNA Project
HoldCo 3 LLC
EGPNA Project
HoldCo 4 LLC
EGPNA Project
HoldCo 5 LLC
EGPNA Project
HoldCo 6 LLC
EGPNA Project
HoldCo 7 LLC
EGPNA REP
Holdings LLC
EGPNA REP Hydro
Holdings LLC
EGPNA REP Solar
Holdings LLC
EGPNA REP Wind
Holdings LLC
EGPNA Wind
Holdings 1 LLC
Wilmington
Wilmington
Wilmington
Dover
Dover
Dover
Dover
Dover
Dover
Dover
Wilmington
Wilmington
Wilmington
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
USA
EGPNA Renewable
Energy Partners LLC
Wilmington
Wilmington
USA
Wilmington
USA
El Dorado Hydro LLC Wilmington
USA
-
-
-
-
-
-
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-
-
-
-
-
-
-
USD
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Joint Venture
Equity
USD
Holding
Line-by-line
USD
Holding
Equity
USD
Holding
Line-by-line
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Equity
Equity
El Paso Solar SAS
ESP
Bogotá
Colombia
91,694,000.00
COP
Electricity generation
Line-by-line
Elcogas SA in
liquidation
Puertollano
(Ciudad Real)
Spain
809,690.40
EUR
Electricity sale
Equity
Elcomex Solar
Energy Srl
Bucharest
Romania
4,590,000.00
RON
Elecgas SA
Pego
Portugal
50,000.00
EUR
Electra Capital (Rf)
(Pty) Ltd
Gauteng
Republic of South
Africa
10,000,000.00
ZAR
Electricity generation
from renewable
resources
Line-by-line
Electricity sale combined
cycle
Equity
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
EGPNA REP Solar
Holdings LLC
100.00% 100.00%
Line-by-line
Enel Stillwater LLC
100.00% 100.00%
Line-by-line
Stillwater Woods Hill
Holdings LLC
100.00% 100.00%
Line-by-line
Padoma Wind Power
LLC
100.00% 100.00%
Enel Green Power
North America
Development LLC
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
Enel North America
Inc.
EGPNA REP
Holdings LLC
Enel North America
Inc.
EGPNA REP
Holdings LLC
Enel North America
Inc.
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
20.00% 20.00%
100.00% 100.00%
50.00% 50.00%
100.00% 100.00%
EGPNA Renewable
Energy Partners LLC
100.00% 20.00%
EGPNA REP Wind
Holdings LLC
100.00% 20.00%
EGPNA REP Hydro
Holdings LLC
Enel Green Power
Colombia SAS ESP
Endesa Generación
SA
Enel SpA
Enel Green Power
Romania Srl
Enel Green Power
SpA
Endesa Generación
Portugal SA
Enel Green Power
RSA (Pty) Ltd
100.00% 50.00%
100.00% 100.00%
40.99%
4.32%
100.00%
0.00%
33.05%
100.00%
50.00% 35.05%
60.00% 60.00%
369
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Eléctrica de Jafre SA
Gerona
Spain
165,876.00
EUR
Electricity distribution
and sale
Line-by-line
Eléctrica de Lijar Sl
Cadiz
Spain
1,081,821.79
EUR
Electricity transmission
and distribution
Equity
Tarragona
Spain
500,000.00
EUR
Electricity supply
Line-by-line
Cadiz
Spain
4,960,246.40
EUR
Barcelona
Spain
2,906,862.00
EUR
Electricity distribution
and sale
Equity
Electricity generation
from renewable
resources
-
Eléctrica del Ebro
SA (Sociedad
Unipersonal)
Electricidad de
Puerto Real SA
Electrometalúrgica
del Ebro SL
Eletropaulo
Metropolitana
Eletricidade de São
Paulo SA
Endesa Red
SA (Sociedad
Unipersonal)
Hidroeléctrica de
Catalunya SL
Endesa Red
SA (Sociedad
Unipersonal)
Endesa Red
SA (Sociedad
Unipersonal)
Endesa Red
SA (Sociedad
Unipersonal)
52.54%
47.46%
70.10%
50.00% 35.05%
100.00% 70.10%
50.00% 35.05%
Enel Green Power
España SL
0.18%
0.12%
Barueri
Brazil
3,079,524,934.33
BRL
Electricity distribution
Line-by-line
Enel Brasil SA
100.00% 57.26%
Elini
Antwerp
Belgium
31,855,683.05
EUR
Insurance
-
Slovenské
elektrárne AS
4.26%
1.41%
Elk Creek Hydro LLC Wilmington
USA
-
Emerging Networks
Latam Inc.
Emerging Networks
Panama SA
Wilmington
USA
100.00
Panama City
Republic of
Panama
1,000.00
USD
USD
USD
Emgesa SA ESP
Bogotá
Colombia
655,222,312,800.00
COP
Electricity generation
from renewable
resources
Line-by-line
Enel North America
Inc.
100.00% 100.00%
-
-
Electricity generation
and sale
Equity
Equity
Ifx Networks Ltd
100.00% 20.60%
Ifx/eni - Spc Panama
Inc.
100.00% 20.60%
Line-by-line
Enel Américas SA
48.48% 27.76%
Seville
Madrid
Spain
Spain
3,000.00
EUR
Photovoltaic
Line-by-line
18,030,000.00
EUR
Mining
Line-by-line
Ceuta
Spain
9,335,000.00
EUR
Electricity distribution
Line-by-line
Ceuta
Spain
16,562,250.00
EUR
Holding
Line-by-line
San Miguel
Peru
7,928,044.00
SOL
San Miguel
Peru
3,368,424.00
SOL
Electricity generation,
transmission, distribution
purchase and sale
Line-by-line
Electricity generation,
transmission, distribution
purchase and sale
Line-by-line
Santiago
Chile
250,428,941.00
CLP
Electricity transmission Line-by-line
Buenos Aires
Argentina
898,585,028.00
ARS
Santiago
Chile
82,222,000.00
CLP
Santiago
Chile
48,038,937.00
CLP
Santiago
Chile
175,774,920,733.00
CLP
Electricity distribution
and sale
Line-by-line
Electricity generation,
transmission and
distribution
Electricity generation
from renewable
resources
Electricity generation,
transmission and
distribution
Line-by-line
Line-by-line
Line-by-line
Enel Green Power
España SL
Endesa Generación
SA
100.00% 70.10%
100.00% 70.10%
Empresa de
Alumbrado Eléctrico
de Ceuta SA
100.00% 67.50%
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
Perú SAC
Energética Monzón
SAC
Enel Green Power
Perú SAC
Energética Monzón
SAC
Empresa Eléctrica
de Colina Ltda
Enel Distribución
Chile SA
Distrilec Inversora
SA
Enel Argentina SA
Enel Chile SA
Enel Distribución
Chile SA
Enel Chile SA
Enel Green Power
Chile Ltda
Enel Generación
Chile SA
96.29% 67.50%
100.00%
0.00%
100.00%
100.00%
100.00%
0.00%
0.10%
99.90%
56.36%
43.10%
0.00%
100.00%
0.04%
99.96%
61.36%
41.30%
61.36%
61.93%
92.65% 53.67%
Emintegral Cycle
SLU
Empresa Carbonífera
del Sur SA
Empresa de
Alumbrado
Eléctrico de Ceuta
Distribución
SA (Sociedad
Unipersonal)
Empresa de
Alumbrado Eléctrico
de Ceuta SA
Empresa de
Generación Eléctrica
Los Pinos SA
Empresa de
Generación Eléctrica
Marcona SAC
Empresa de
Transmisión Chena
SA
Empresa
Distribuidora Sur SA
- Edesur
Empresa Eléctrica
de Colina Ltda
Empresa Eléctrica
Panguipulli SA
Empresa Eléctrica
Pehuenche SA
370
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Empresa Nacional
de Geotermia SA
Empresa Propietaria
de La Red SA
Santiago
Chile
12,647,789,439.24
CLP
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Chile Ltda
51.00% 31.58%
Panama City
Panama
58,500,000.00
USD
Electricity transmission
and distribution
-
Enel SpA
11.11%
11.11%
Endesa Capital SA
Madrid
Spain
60,200.00
EUR
Finance
Line-by-line
Endesa SA
100.00% 70.10%
Endesa
Comercialização de
Energia SA
Endesa Energía
Renovable
SL (Sociedad
Unipersonal)
Porto
Portugal
250,000.00
EUR
Electricity generation
and sale
Line-by-line
Endesa Energía SA
100.00% 70.10%
Madrid
Spain
100,000.00
EUR
Electricity supply
Line-by-line
Endesa Energía SA
100.00% 70.10%
Endesa Energía SA
Madrid
Spain
14,919,195.32
EUR
Marketing of energy
products
Line-by-line
Endesa SA
100.00% 70.10%
Madrid
Spain
4,621,003,006.00
EUR
Finance
Line-by-line
Endesa SA
100.00% 70.10%
Seville
Seville
Spain
Spain
60,000.00
EUR
Subholding company in
the nuclear sector
Line-by-line
63,107.00
EUR
Electricity sale
Line-by-line
Endesa SA
100.00% 70.10%
Endesa Generación
SA
Endesa Energía SA
Endesa Generación
SA
Enel Green Power
España SL
100.00% 70.10%
0.20%
99.20%
70.10%
0.60%
Lisbon
Portugal
50,000.00
EUR
Electricity sale
Line-by-line
Seville
Spain
1,940,379,735.35
EUR
Electricity generation
and sale
Line-by-line
Endesa SA
100.00% 70.10%
Seville
Spain
1,000,000.00
EUR
Consulting and
engineering services
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
100.00% 70.10%
Madrid
Spain
89,999,790.00
EUR
Services
Line-by-line
Endesa SA
100.00% 70.10%
Madrid
Spain
10,138,580.00
EUR
Services
Line-by-line
Endesa Energía SA
100.00% 70.10%
London
United Kingdom
2.00
GBP
Trading
Line-by-line
Endesa SA
100.00% 70.10%
Madrid
Spain
719,901,723.26
EUR
Electricity distribution
Line-by-line
Endesa SA
100.00% 70.10%
Madrid
Madrid
Spain
Spain
1,270,502,540.40
EUR
Holding
Line-by-line
Enel Iberia SLU
70.10% 70.10%
3,000.00
EUR
Marketing of energy
products
Line-by-line
Endesa Energía SA
100.00% 70.10%
Madrid
Spain
60,000.00
EUR
Services
Line-by-line
Endesa SA
100.00% 70.10%
Endesa Financiación
Filiales SA
Endesa Generación
II SA
Endesa Generación
Nuclear SA
Endesa Generación
Portugal SA
Endesa Generación
SA
Endesa Ingeniería
SLU
Endesa Medios
y Sistemas
SL (Sociedad
Unipersonal)
Endesa Operaciones
y Servicios
Comerciales SL
Endesa Power
Trading Ltd
Endesa Red
SA (Sociedad
Unipersonal)
Endesa SA
Endesa Soluciones
SLU
Endesa X SA
(Sociedad
Unipersonal)
Enel Alberta Wind
Inc.
Calgary
Canada
16,251,021.00
CAD
Enel Américas SA
Santiago
Chile
9,783,875,314.43
USD
Electricity generation
from renewable
resources
Holding. Electricity
generation and
distribution
Line-by-line
Enel Green Power
Canada Inc.
100.00% 100.00%
Line-by-line
Enel SpA
57.26% 57.26%
Enel And Shikun
& Binui Innovation
Infralab Ltd
Airport City
Israel
38,000.00
ILS
Legal services
Equity
Enel Argentina SA
Buenos Aires
Argentina
2,297,711,908.00
ARS
Holding
Line-by-line
Enel Bella Energy
Storage LLC
Delaware
USA
-
USD
Renewable energy
Line-by-line
Enel Global
Infrastructure and
Networks Srl
Enel Américas SA
Enel Generación
Chile SA
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
50.00% 50.00%
99.92%
0.08%
57.26%
100.00% 100.00%
371
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Brasil SA
Niterói
Brazil
16,158,210,421.21
BRL
Holding
Line-by-line
Enel Américas SA
Enel Brasil SA
99.16%
0.84%
57.26%
Enel Chile SA
Santiago
Chile
3,882,103,470,184.00
CLP
Enel CIEN SA
Niterói
Brazil
285,044,682.00
BRL
Enel Cove Fort II LLC Wilmington
USA
Enel Cove Fort LLC
Beaver
USA
-
-
USD
USD
Enel Distribución
Chile SA
Enel Distribución
Perú SAA
Santiago
Chile
230,137,979,938.00
CLP
San Miguel
638,563,900.00
SOL
Peru
Italy
Holding. Electricity
generation and
distribution
Electricity generation,
transmission and
distribution
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Holding. Electricity
distribution
Electricity distribution
and sale
Line-by-line
Enel SpA
61.93% 61.93%
Line-by-line
Enel Brasil SA
100.00% 57.26%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel Geothermal
LLC
100.00% 100.00%
Line-by-line
Enel Chile SA
99.09% 61.36%
Line-by-line
Enel Perú SAC
83.15% 47.61%
Enel Energia SpA
Rome
302,039.00
EUR
Gas and electricity sale
Line-by-line
Enel SpA
100.00% 100.00%
Enel Energía SA
de Cv
Enel Energie
Muntenia SA
Mexico City
Mexico
25,000,100.00
MXN
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
México S de RL
de Cv
Energía Nueva de
Iguu S de RL de Cv
100.00%
0.00%
100.00%
Bucharest
Romania
37,004,350.00
RON
Electricity sale
Line-by-line
Enel SpA
78.00% 78.00%
Enel Energie SA
Bucharest
Romania
140,000,000.00
RON
Electricity sale
Line-by-line
Enel SpA
51.00% 51.00%
Enel Energy
Australia (Pty) Ltd
Barangaroo,
Sydney
Australia
100.00
AUD
Electricity sale
Line-by-line
Enel Energy South
Africa
Wilmington
Republic of South
Africa
100.00
ZAR
Line-by-line
Enel Green Power
Australia (Pty) Ltd
Enel X International
Srl
100.00% 100.00%
100.00% 100.00%
Andover
USA
100.00
USD
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Wilmington
USA
200,000,000.00
USD
Finance
Line-by-line
Amsterdam
Netherlands
1,478,810,371.00
EUR
Finance
Line-by-line
Enel Holding Finance
Srl
100.00% 100.00%
Enel Holding Finance
Srl
Enel SpA
75.00%
25.00%
100.00%
Enel Fortuna SA
Panama City
Panama
100,000,000.00
USD
Santiago
Chile
552,777,320,871.00
CLP
Buenos Aires
Argentina
701,988,378.00
Buenos Aires
Argentina
298,584,050.00
ARS
ARS
Electricity generation
from renewable
resources
Electricity generation,
transmission and
distribution
Electricity generation
and sale
Electricity generation
and sale
Line-by-line
Enel Green Power
Panamá Srl
50.06% 50.06%
Line-by-line
Enel Chile SA
93.55% 57.93%
Line-by-line
Enel Argentina SA
75.68% 43.34%
Line-by-line
Enel Argentina SA
Hidroinvest SA
8.67%
59.00%
37.64%
San Miguel
San Miguel
Peru
Peru
2,498,101,267.20
SOL
Electricity generation
Line-by-line
Enel Perú SAC
83.60% 47.87%
73,982,594.00
SOL
Electricity generation
Line-by-line
Enel Perú SAC
96.50% 55.26%
Mexico City
Mexico
7,100,100.00
MXN
Electricity generation
Line-by-line
Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
México S de RL
de Cv
Energía Nueva de
Iguu S de RL de Cv
Enel North America
Inc.
100.00%
0.00%
100.00%
100.00% 100.00%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Finance
America LLC
Enel Finance
International NV
Enel Generación
Chile SA
Enel Generación
Costanera SA
Enel Generación El
Chocón SA
Enel Generación
Perú SAA
Enel Generación
Piura SA
Enel Generación SA
de Cv
Enel Geothermal
LLC
372
Consolidated Annual Report 2019 Enel Global
Infrastructure and
Networks Srl
Enel Global Services
Srl
Enel Global Thermal
Generation Srl
Enel Global Trading
SpA
Enel Green Power
Newfoundland and
Labrador Inc.
Enel Green Power
Argentina SA
Enel Green Power
Boa Vista Eólica SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Bulgaria EAD
Enel Green Power
Calabria Srl
Enel Green Power
Canada Inc.
Enel Green Power
Chile Ltda
Enel Green Power
Cohuna Holdings
(Pty) Ltd
Enel Green Power
Colombia SAS ESP
Enel Green Power
Costa Rica SA
Enel Green Power
Cove Fort Solar LLC
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Rome
Italy
10,100,000.00
EUR
Rome
Italy
10,000.00
EUR
Rome
Italy
11,000,000.00
EUR
Metering, remote
control and connectivity
services via power line
communication
Engineering and
consulting services
Business consulting,
administrative and
management consulting
and corporate planning
Line-by-line
Enel SpA
100.00% 100.00%
Line-by-line
Enel SpA
100.00% 100.00%
Line-by-line
Enel SpA
100.00% 100.00%
Rome
Italy
90,885,000.00
EUR
Fuel trading and logistics Line-by-line
Enel SpA
100.00% 100.00%
Newfoundland
Canada
1,000.00
CAD
Buenos Aires
Argentina
82,534,295.00
ARS
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Line-by-line
Enel Green Power
Australia (Pty) Ltd
Barangaroo,
Sydney
Enel Green Power
Australia Trust
Barangaroo,
Sydney
Australia
100.00
AUD
Australia
100.00
AUD
Renewables
Line-by-line
Niterói
Brazil
122,952,830.00
BRL
Wind plants
Line-by-line
Niterói
Brazil
7,161,724,678.00
BRL
Holding
Line-by-line
Sofia
Bulgaria
35,231,000.00
BGN
Australia
100.00
AUD
Plant construction
operation and
maintenance
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Enel Green Power
Bungala (Pty) Ltd
Barangaroo,
Sydney
Enel Green Power
Bungala Trust
Barangaroo,
Sydney
Australia
-
AUD
Renewables
Line-by-line
Enel Green Power
Cabeça de Boi SA
Niterói
Brazil
270,114,539.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cachoeira Dourada
SA
Cachoeira
Dourada
Brazil
64,339,835.85
BRL
Electricity generation
and sale
Line-by-line
Rome
Italy
10,000.00
EUR
Montreal
Canada
85,681,857.00
CAD
Santiago
Chile
842,086,000.00
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Barangaroo,
Sydney
Australia
100.00
AUD
Holding
Line-by-line
Enel Green Power
Cohuna Trust
Barangaroo,
Sydney
Australia
-
AUD
Renewables
Line-by-line
EGPNA REP Wind
Holdings LLC
Enel Green Power
SpA
Energía y Servicios
South America SpA
Enel Green Power
SpA
Enel Green Power
SpA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
SpA
Energía y Servicios
South America SpA
Enel Green Power
SpA
Enel Green Power
Australia (Pty) Ltd
Enel Green Power
Australia (Pty) Ltd
Enel Green Power
Brasil Participações
Ltda
Enel Brasil SA
Enel Green Power
Cachoeira Dourada
SA
Enel Green Power
SpA
100.00% 20.00%
99.24%
0.76%
100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00%
0.00%
100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
99.61%
0.15%
57.12%
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel Chile SA
Enel SpA
99.99%
0.01%
61.93%
Enel Green Power
Australia (Pty) Ltd
Enel Green Power
Australia Trust
Enel Green Power
SpA
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Bogotá
Colombia
3,387,243,000.00
COP
San José
Costa Rica
27,500,000.00
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Energía y Servicios
South America SpA
100.00% 100.00%
Wilmington
USA
1.00
USD
-
Line-by-line
Enel Kansas LLC
100.00% 100.00%
373
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Schenkenberg
Germany
1,000.00
EUR
Plant construction,
operation
Line-by-line
Enel Green Power
Germany GmbH
90.00% 90.00%
Enel Green Power
Cremzow GmbH &
Co. Kg
Enel Green
Power Cremzow
Verwaltungs GmbH
Enel Green Power
Cristal Eólica SA
Schenkenberg
Germany
25,000.00
EUR
Business services
Line-by-line
Niterói
Brazil
144,784,899.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Germany GmbH
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Cristal Eólica SA
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Chile SA
Enel Green Power
Chile Ltda
90.00% 90.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.17%
0.83%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
99.90%
0.10%
99.90%
0.10%
99.90%
0.10%
99.16%
100.00%
61.93%
0.84%
0.00%
100.00%
Enel Green Power
Cumaru 01 SA
Niterói
Brazil
100,001,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cumaru 02 SA
Niterói
Brazil
100,001,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cumaru 03 SA
Niterói
Brazil
100,001,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cumaru 04 SA
Niterói
Brazil
100,001,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cumaru 05 SA
Niterói
Brazil
100,001,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cumaru 07 SA
Niterói
Brazil
1,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Cumaru 6 SA
Niterói
Brazil
1,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Niterói
Brazil
1,000.00
BRL
Holding
Line-by-line
Niterói
Brazil
83,709,003.00
BRL
Santiago
Chile
355,605,313.00
USD
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green
Power Cumaru
Participações SA
Enel Green Power
Damascena Eólica
SA
Enel Green Power
del Sur SpA
374
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Delfina A Eólica SA
Enel Green Power
Delfina B Eólica SA
Enel Green Power
Delfina C Eólica SA
Enel Green Power
Delfina D Eólica SA
Enel Green Power
Delfina E Eólica SA
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Development Srl
Enel Green Power
Diamond Vista Wind
Project LLC
Enel Green Power
Dois Riachos Eólica
SA
Enel Green Power
Egypt SAE
Enel Green Power
Elkwater Wind
Limited Partnership
Enel Green Power El
Salvador SA de Cv
(in liquidation)
Enel Green Power
Emiliana Eólica SA
Enel Green Power
España SL
Enel Green Power
Esperança Eólica SA
Enel Green Power
Fazenda SA
Enel Green Power
Fontes dos Ventos
2 SA
Niterói
Brazil
549,062,483.00
BRL
Niterói
Brazil
93,538,826.00
BRL
Niterói
Brazil
39,558,322.00
BRL
Niterói
Brazil
113,170,233.00
BRL
Niterói
Brazil
115,923,464.00
BRL
Niterói
Brazil
33,474,258.38
BRL
Rome
Italy
20,000.00
EUR
Wilmington
USA
1.00
USD
Niterói
Brazil
130,354,009.00
BRL
Cairo
Egypt
250,000.00
EGP
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Plant construction
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Management, operation
and maintenance of all
types of generation plant
and their distribution grids
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Energía y Servicios
South America SpA
Enel Green Power
SpA
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00%
100.00%
0.00%
100.00% 100.00%
Line-by-line
Diamond Vista
Holdings LLC
100.00% 100.00%
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00% 100.00%
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Calgary
Canada
1,000.00
CAD
Holding
Line-by-line
-
El Salvador
-
SVC
Electricity generation
from renewable
resources
Line-by-line
Niterói
Brazil
150,191,530.00
BRL
W
Line-by-line
Seville
Spain
11,152.74
EUR
Niterói
Brazil
129,418,174.00
BRL
Niterói
Brazil
264,141,174.00
BRL
Niterói
Brazil
121,001,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Enel Green Power
SpA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Emiliana Eólica SA
Endesa Generación
SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
1.00%
99.00%
100.00%
100.00% 100.00%
98.93%
1.07%
100.00%
100.00% 70.10%
99.14%
0.86%
100.00%
100.00% 100.00%
100.00%
0.00%
100.00%
375
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Fontes dos Ventos
3 SA
Enel Green Power
Germany GmbH
Enel Green Power
Girgarre Holdings
(Pty) Ltd
Enel Green Power
Global Investment
BV
Enel Green Power
Guatemala SA
Niterói
Brazil
121,001,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Munich
Germany
25,000.00
EUR
Electricity generation
and sale
Line-by-line
Barangaroo,
Sydney
Australia
100.00
AUD
Renewables
Line-by-line
Amsterdam
Netherlands
10,000.00
EUR
Holding
Line-by-line
Guatemala City
Guatemala
10,000,000.00
GTQ
Holding
Line-by-line
-
Canada
1,000.00
CAD
Holding
Line-by-line
Maroussi
Greece
8,170,350.00
EUR
Holding. Energy services Line-by-line
Maroussi
Greece
600,000.00
EUR
Maroussi
Greece
106,599,641.00
EUR
Electricity generation,
transport, sale and trading
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
Enel Green Power
Australia (Pty) Ltd
Enel Green Power
SpA
Enel Green Power
SpA
Energía y Servicios
South America SpA
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Enel Green Power
SpA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
100.00%
0.00%
100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00%
0.00%
1.00%
99.00%
100.00%
100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Dover
USA
1.00
USD
Operator Wind
Line-by-line
Hilltopper Wind
Holdings LLC
100.00% 100.00%
Niterói
Brazil
451,566,053.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
0.01%
99.99%
100.00%
New Delhi
India
100,000,000.00
INR
Holding
Line-by-line
Enel Green Power
Development Srl
100.00% 100.00%
Line-by-line
Enel SpA
100.00% 100.00%
Rome
Italy
10,000.00
EUR
Niterói
Brazil
199,552,644.00
BRL
Niterói
Brazil
219,235,933.00
BRL
Niterói
Brazil
407,279,143.00
BRL
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Niterói
Brazil
135,459,530.00
BRL
Wind plants
Line-by-line
Nairobi
Kenya
100,000.00
KES
Plant construction
- Electricity generation
from renewable
resources
Line-by-line
Bondia Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Bondia Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Bondia Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
SpA
0.09%
99.91%
0.00%
100.00%
0.00%
100.00%
98.89%
1.11%
1.00%
99.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Enel Green Power
Hadros Wind Limited
Partnership
Enel Green Power
Hellas SA
Enel Green Power
Hellas Supply SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hilltopper Wind LLC
(formerly Hilltopper
Wind Power LLC)
Enel Green Power
Horizonte Mp Solar
SA
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green Power
Italia Srl
Enel Green Power
Ituverava Norte
Solar SA
Enel Green Power
Ituverava Solar SA
Enel Green Power
Ituverava Sul Solar
SA
Enel Green Power
Joana Eólica SA
Enel Green Power
Kenya Limited
376
Consolidated Annual Report 2019
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Lagedo Alto SA
Enel Green Power
Lagoa Participações
SA (formerly Enel
Green Power
Projetos 45 SA)
Enel Green Power
Maniçoba Eólica SA
Enel Green Power
Metehara Solar
Privrate Limited
Company
Enel Green Power
México S de RL
de Cv
Enel Green Power
Modelo I Eólica SA
Enel Green Power
Modelo II Eólica SA
Enel Green Power
Morocco SARLAU
Enel Green Power
Morro do Chapéu I
Eólica SA
Enel Green Power
Morro do Chapéu II
Eólica SA
Enel Green Power
Mourão SA
Enel Green Power
Namibia (Pty) Ltd
Enel Green Power
North America
Development LLC
Enel Green Power
North America Inc.
Enel Green Power
O&M Solar LLC
Enel Green Power
Panamá Srl
Enel Green Power
Paranapanema SA
Enel Green Power
Partecipazioni
Speciali Srl
Niterói
Brazil
1,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Niterói
Brazil
1,000.00
BRL
Holding
Line-by-line
Niterói
Brazil
90,722,530.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
99.90%
0.10%
99.90%
0.10%
99.20%
0.80%
100.00%
100.00%
100.00%
-
Ethiopia
5,600,000.00
ETB
Plant development, and
construction
Line-by-line
Enel Green Power
Solar Metehara SpA
80.00% 80.00%
Mexico City
Mexico
2,399,774,165.00
MXN
Holding
Line-by-line
Niterói
Brazil
132,642,000.00
BRL
Niterói
Brazil
117,142,000.00
BRL
Casablanca
Morocco
170,000,000.00
MAD
Niterói
Brazil
408,441,942.00
BRL
Niterói
Brazil
355,361,942.00
BRL
Niterói
Brazil
25,600,100.00
BRL
Windhoek
Namibia
10,000.00
NAD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Plant development,
design, construction and
operation
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Enel Green Power
SpA
Energía y Servicios
South America SpA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
SpA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
SpA
100.00%
0.00%
100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Wilmington
USA
Andover
Andover
USA
USA
-
-
-
USD
USD
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Electricity generation,
transport, sale and trading
Line-by-line
Enel North America
Inc.
100.00% 100.00%
USD
Plant maintenance
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Panama City
Panama
3,001.00
USD
Holding
Line-by-line
Niterói
Brazil
123,350,100.00
BRL
Rome
Italy
10,000.00
EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Enel Green Power
SpA
Energía y Servicios
South America SpA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
SpA
99.97%
0.03%
100.00%
100.00% 100.00%
100.00% 100.00%
377
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Pau Ferro Eólica SA
Enel Green Power
Pedra do Gerônimo
Eólica SA
Enel Green Power
Perú SAC
Enel Green Power
Primavera Eólica SA
Enel Green Power
Puglia Srl
Enel Green
Power RA SAE (in
liquidation)
Enel Green Power
Rattlesnake Creek
Wind Project
LLC (formerly
Rattlesnake Creek
Wind Project LLC)
Enel Green Power
Roadrunner Solar
Project Holdings LLC
Enel Green Power
Roadrunner Solar
Project II LLC
Enel Green Power
Romania Srl
Niterói
Brazil
127,424,000.00
BRL
Wind plants
Line-by-line
Niterói
Brazil
189,519,527.57
BRL
Wind plants
Line-by-line
San Miguel
Perù
394,035,184.00
SOL
Electricity generation
from renewable
resources
Line-by-line
Niterói
Brazil
143,674,900.01
BRL
Wind plants
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Pau Ferro Eólica SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
Energía y Servicios
South America SpA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
98.79%
1.21%
98.90%
1.10%
100.00%
0.00%
99.00%
1.00%
100.00%
100.00%
100.00%
100.00%
100.00% 100.00%
Rome
Italy
1,000,000.00
EUR
Cairo
Egypt
15,000,000.00
EGP
Delaware
USA
1.00
USD
Andover
USA
-
USD
Electricity generation
from renewable
resources
Design, decision,
operation and
maintenance of
generation plants of
all types and their
distribution grids
Electricity generation
from renewable
resources
Holding. Electricity
generation and
distribution
Line-by-line
Line-by-line
Enel Green Power
Egypt SAE
100.00% 100.00%
Line-by-line
Rattlesnake Creek
Holdings LLC
100.00% 100.00%
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Dover
USA
100.00
USD
Renewables
Line-by-line
Roadrunner Solar
Project Holdings LLC
100.00% 100.00%
Bucharest
Romania
2,430,631,000.00
RON
Enel Green Power
RSA (Pty) Ltd
Gauteng
Republic of South
Africa
1,000.00
ZAR
Enel Green Power
RSA 2 (RF) (Pty) Ltd
Gauteng
Republic of South
Africa
120.00
ZAR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Enel Green Power
Rus Limited Liability
Company
Moscow
Russian
Federation
60,500,000.00
RUB
Renewables
Line-by-line
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Line-by-line
Enel Green Power
Development Srl
100.00% 100.00%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
SpA
100.00% 100.00%
1.00%
99.00%
100.00%
Rome
Italy
272,000,000
EUR
Electricity generation
from renewable
resources
Line-by-line
Enel SpA
100.00% 100.00%
Niterói
Brazil
274,420,832.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00% 100.00%
Rome
Italy
750,000.00
EUR
Electricity generation
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Enel Green Power
SpA
Enel Green Power
Salto Apiacás SA
(formerly Enel Green
Power Damascena
Eólica SA)
Enel Green Power
Sannio
378
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
São Abraão Eólica
SA
Enel Green Power
São Gonçalo 07 SA
(formerly Enel Green
Power Projetos
42 SA)
Enel Green Power
São Gonçalo 08 SA
(formerly Enel Green
Power Projetos
43 SA)
Enel Green Power
São Gonçalo 1 SA
(formerly Enel Green
Power Projetos 10)
Enel Green Power
São Gonçalo 10 SA
(formerly Enel Green
Power Projetos 15)
Enel Green Power
São Gonçalo 11 SA
(formerly Enel Green
Power Projetos
44 SA)
Enel Green Power
São Gonçalo 12 SA
(formerly Enel Green
Power Projetos
22 SA)
Enel Green Power
São Gonçalo 13 SA
Niterói
Brazil
115,513,587.00
BRL
Teresina
Brazil
30,001,000.00
BRL
Teresina
Brazil
30,001,000.00
BRL
Teresina
Brazil
147,676,000.00
BRL
Teresina
Brazil
162,000,000.00
BRL
Teresina
Brazil
30,001,000.00
BRL
Teresina
Brazil
30,001,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Enel Green Power
São Gonçalo 14
Teresina
Brazil
1,000.00
BRL
Enel Green Power
São Gonçalo 15
Enel Green Power
São Gonçalo 16 SA
Enel Green Power
São Gonçalo 17 SA
Enel Green Power
São Gonçalo 18 SA
(formerly Enel Green
Power Ventos de
Santa Ângela 13 SA)
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
100.00% 100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
0.00%
100.00%
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
0.10%
99.90%
100.00%
99.89%
100.00%
0.11%
99.89%
100.00%
0.11%
0.10%
99.90%
100.00%
99.90%
100.00%
0.10%
99.90%
0.10%
100.00%
379
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
162,676,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
162,000,000.00
BRL
Teresina
Brazil
162,000,000.00
BRL
Teresina
Brazil
142,676,000.00
BRL
Teresina
Brazil
162,676,000.00
BRL
Teresina
Brazil
162,676,000.00
BRL
Teresina
Brazil
14,976,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Niterói
Brazil
1,000.00
BRL
Holding
Line-by-line
Niterói
Brazil
143,674,900.00
BRL
Wind plants
Line-by-line
Wilmington
USA
100.00
USD
-
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Alba Energia Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel North America
Inc.
99.90%
100.00%
0.10%
0.00%
100.00%
100.00%
99.90%
100.00%
0.10%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.00%
100.00%
0.10%
99.90%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
99.90%
100.00%
0.10%
99.00%
100.00%
1.00%
100.00% 100.00%
Cairo
Egypt
15,000,000.00
EGP
Singapore
Singapore
1,300,000.00
SGD
Rome
Italy
10,000.00
EUR
Design, decision,
operation and
maintenance of
generation plants of
all types and their
distribution grids
Electricity generation
from renewable
resources
Plant development,
design, construction and
operation
Line-by-line
Enel Green Power
Egypt SAE
100.00% 100.00%
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Enel Green Power
São Gonçalo 19 SA
Enel Green Power
São Gonçalo 2 SA
(formerly Enel Green
Power Projetos 11)
Enel Green Power
São Gonçalo 20 SA
Enel Green Power
São Gonçalo 21 SA
(formerly Enel Green
Power Projetos 16)
Enel Green Power
São Gonçalo 22 SA
(formerly Enel Green
Power Projetos 30)
Enel Green Power
São Gonçalo 3 SA
(formerly Enel Green
Power Projetos 12)
Enel Green Power
São Gonçalo 4 SA
(formerly Enel Green
Power Projetos 13)
Enel Green Power
São Gonçalo 5 SA
(formerly Enel Green
Power Projetos 14)
Enel Green Power
São Gonçalo 6 SA
(formerly Enel Green
Power Projetos
19 SA)
Enel Green Power
São Gonçalo 9 SA
Enel Green Power
São Gonçalo
Participações SA
(formerly Enel Green
Power Projetos
46 SA)
Enel Green Power
São Judas Eólica SA
Enel Green Power
Services LLC
Enel Green Power
Shu SAE (in
liquidation)
Enel Green Power
Singapore Pte Ltd
Enel Green Power
Solar Energy Srl
380
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Solar Metehara SpA
Enel Green Power
Solar Ngonye SpA
(formerly Enel Green
Power Africa Srl)
Enel Green Power
Tacaicó Eólica SA
Enel Green Power
Tefnut SAE (in
liquidation)
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
Ventos de Santa
Ângela 1 SA
Enel Green Power
Ventos de Santa
Ângela 10 SA
(formerly Enel Green
Power Projetos 21)
Enel Green Power
Ventos de Santa
Ângela 11 SA
(formerly Enel Green
Power Projetos 23)
Enel Green Power
Ventos de Santa
Ângela 14 SA
(formerly Enel Green
Power Projetos 24)
Enel Green Power
Ventos de Santa
Ângela 15 SA
(formerly Enel Green
Power Projetos 25)
Enel Green Power
Ventos de Santa
Ângela 17 SA
(formerly Enel Green
Power Projetos 26)
Enel Green Power
Ventos de Santa
Ângela 19 SA
(formerly Enel Green
Power Projetos 27)
Enel Green Power
Ventos de Santa
Ângela 2 SA
Rome
Italy
50,000.00
EUR
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Rome
Italy
50,000.00
EUR
Electricity sale
Line-by-line
Niterói
Brazil
91,634,360.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
98.84%
100.00%
1.16%
Cairo
Egypt
15,000,000.00
EGP
Istanbul
Turkey
65,654,658.00
TRY
Teresina
Brazil
132,001,000.00
BRL
Teresina
Brazil
171,001,000.00
BRL
Teresina
Brazil
185,001,000.00
BRL
Teresina
Brazil
178,001,000.00
BRL
Teresina
Brazil
182,001,000.00
BRL
Teresina
Brazil
198,001,000.00
BRL
Teresina
Brazil
126,001,000.00
BRL
Teresina
Brazil
249,650,000.00
BRL
Design, decision,
operation and
maintenance of
generation plants of
all types and their
distribution grids
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Egypt SAE
100.00% 100.00%
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
381
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Teresina
Brazil
126,001,000.00
BRL
Teresina
Brazil
113,001,000.00
BRL
Teresina
Brazil
132,001,000.00
BRL
Teresina
Brazil
132,001,000.00
BRL
Teresina
Brazil
132,001,000.00
BRL
Teresina
Brazil
132,001,000.00
BRL
Teresina
Brazil
106,001,000.00
BRL
Teresina
Brazil
132,001,000.00
BRL
Teresina
Brazil
185,001,000.00
BRL
Teresina
Brazil
105,001,000.00
BRL
Teresina
Brazil
105,001,000.00
BRL
Teresina
Brazil
105,001,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Esperança Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Ventos de Santa
Ângela Energias
Renováveis SA
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
Enel Green Power
Ventos de Santa
Ângela 20 SA
(formerly Enel Green
Power Projetos 28)
Enel Green Power
Ventos de Santa
Ângela 21 SA
(formerly Enel Green
Power Projetos 29)
Enel Green Power
Ventos de Santa
Ângela 3 SA
(formerly Enel Green
Power Projetos 4)
Enel Green Power
Ventos de Santa
Ângela 4 SA
(formerly Enel Green
Power Projetos 6)
Enel Green Power
Ventos de Santa
Ângela 5 SA
(formerly Enel Green
Power Projetos 7)
Enel Green Power
Ventos de Santa
Ângela 6 SA
(formerly Enel Green
Power Projetos 8)
Enel Green Power
Ventos de Santa
Ângela 7 SA
(formerly Enel Green
Power Projetos 9)
Enel Green Power
Ventos de Santa
Ângela 8 SA
(formerly Enel Green
Power Projetos 18)
Enel Green Power
Ventos de Santa
Ângela 9 SA
(formerly Enel Green
Power Projetos 20)
Enel Green Power
Ventos de Santa
Ângela ACL 12
(formerly Enel Green
Power Projetos 36)
Enel Green Power
Ventos de Santa
Ângela ACL 13 SA
(formerly Enel Green
Power Projetos
17 SA)
Enel Green Power
Ventos de Santa
Ângela ACL 16 SA
(formerly Enel Green
Power Projetos
38 SA)
382
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Ventos de Santa
Ângela ACL 18 SA
(formerly Enel Green
Power Projetos
47 SA)
Enel Green Power
Ventos de Santa
Esperança 08 SA
(formerly Enel Green
Power Projetos
34 SA)
Enel Green Power
Ventos de Santa
Esperança 1 SA
(formerly Enel Green
Power Fonte dos
Ventos 1 SA)
Enel Green Power
Ventos de Santa
Esperança 13
(formerly Enel Green
Power Projetos
33 SA)
Enel Green Power
Ventos de Santa
Esperança 15 SA
Enel Green Power
Ventos de Santa
Esperança 16 SA
(formerly Enel Green
Power Projetos
35 SA)
Enel Green Power
Ventos de Santa
Esperança 17 SA
(formerly Enel Green
Power Projetos
31 SA)
Enel Green Power
Ventos de Santa
Esperança 21 SA
(formerly Enel Green
Power Projetos
37 SA)
Enel Green Power
Ventos de Santa
Esperança 22 SA
(formerly Enel Green
Power Projetos
39 SA)
Enel Green Power
Ventos de Santa
Esperança 25 SA
(formerly Enel Green
Power Projetos
40 SA)
Enel Green Power
Ventos de Santa
Esperança 26 SA
(formerly Enel Green
Power Projetos
41 SA)
Teresina
Brazil
105,001,000.00
BRL
Niterói
Brazil
110,200,000.00
BRL
Niterói
Brazil
1,000.00
BRL
Niterói
Brazil
147,000,000.00
BRL
Niterói
Brazil
202,100,000.00
BRL
Niterói
Brazil
183,700,000.00
BRL
Niterói
Brazil
183,700,000.00
BRL
Niterói
Brazil
202,100,000.00
BRL
Niterói
Brazil
202,100,000.00
BRL
Niterói
Brazil
110,200,000.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Niterói
Brazil
202,100,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Ventos de Santa
Esperança 26 SA
(formerly Enel Green
Power Projetos
41 SA)
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
99.90%
100.00%
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
0.00%
100.00%
383
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Niterói
Brazil
1,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Niterói
Brazil
1,000.00
BRL
Holding
Line-by-line
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
138,001,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
99.90%
0.10%
100.00%
99.90%
100.00%
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
99.90%
100.00%
0.10%
100.00%
100.00%
0.00%
100.00%
100.00%
0.00%
99.90%
100.00%
0.10%
Enel Green Power
Ventos de Santa
Esperança 3 SA
Enel Green
Power Ventos de
Santa Esperança
Participações SA
(formerly Enel Green
Power Cumaru
06 SA)
Enel Green Power
Ventos de São
Roque 01 SA
Enel Green Power
Ventos de São
Roque 02 SA
Enel Green Power
Ventos de São
Roque 04 SA
Enel Green Power
Ventos de São
Roque 08 SA
Enel Green Power
Ventos de São
Roque 11 SA
Enel Green Power
Ventos de São
Roque 13 SA
Enel Green Power
Ventos de São
Roque 16 SA
Enel Green Power
Ventos de São
Roque 17 SA
Enel Green Power
Ventos de São
Roque 18 SA
384
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Green Power
Ventos de São
Roque 19 SA
Enel Green Power
Ventos de São
Roque 22 SA
Enel Green Power
Ventos de São
Roque 26 SA
Enel Green Power
Ventos de São
Roque 29 SA
Enel Green Power
Villoresi Srl
Enel Green Power
Volta Grande SA
(formerly Enel Green
Power Projetos 1 SA)
Enel Green Power
Zambia Limited
Enel Green Power
Zeus II - Delfina 8 SA
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Teresina
Brazil
1,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Rome
Italy
1,200,000.00
EUR
Niterói
Brazil
565,756,528.00
BRL
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
SpA
99.90%
100.00%
0.10%
99.90%
100.00%
0.10%
99.90%
100.00%
0.10%
99.90%
0.10%
100.00%
51.00% 51.00%
Line-by-line
Enel Brasil SA
100.00% 57.26%
Lusaka
Zambia
15,000.00
ZMW Electricity sale
Line-by-line
Niterói
Brazil
140,001,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Development Srl
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Brasil Participações
Ltda
1.00%
99.00%
100.00%
100.00% 100.00%
Enel Holding Finance
Srl
Rome
Enel Iberia SLU
Madrid
Italy
Spain
10,000.00
EUR
Holding
Line-by-line
Enel SpA
100.00% 100.00%
336,142,500.00
EUR
Holding
Line-by-line
Enel SpA
100.00% 100.00%
Enel Innovation
Hubs Srl
Rome
Italy
1,100,000.00
EUR
Civil and mechanical
engineering, water
systems
Line-by-line
Enel SpA
100.00% 100.00%
Enel Insurance NV
Amsterdam
Netherlands
60,000.00
EUR
Reassurance
Line-by-line
Enel SpA
100.00% 100.00%
Enel Investment
Holding BV
Amsterdam
Netherlands
1,000,000.00
EUR
Holding
Line-by-line
Enel SpA
100.00% 100.00%
Enel Italia SpA
Rome
Italy
50,100,000.00
EUR
Enel Kansas LLC
Wilmington
USA
Enel Minnesota
Holdings LLC
Minneapolis
USA
Enel Nevkan Inc.
Wilmington
USA
-
-
-
USD
USD
USD
Personnel administration
activities, information
technology, real estate
and business services
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel SpA
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
EGP Geronimo
Holding Company
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Enel Green Power
SpA
Enel Green Power
Canada Inc.
100.00% 100.00%
100.00% 100.00%
Enel North America
Inc.
Enel Operations
Canada Ltd
Andover
USA
50.00
USD
Line-by-line
Calgary
Canada
1,000.00
CAD
-
Line-by-line
Enel Perú SAC
San Miguel
Enel Produzione SpA
Rome
Peru
Italy
5,361,789,105.00
1,800,000,000.00
SOL
EUR
Holding
Line-by-line
Enel Américas SA
100.00% 57.26%
Electricity sale
Line-by-line
Enel SpA
100.00% 100.00%
385
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Rinnovabile SA
de Cv
Enel Roadrunner
Solar Project
Holdings LLC
Mexico City
Mexico
100.00
MXN
Electricity generation
Line-by-line
Dover
USA
100.00
USD
Renewables
Line-by-line
Enel Green Power
Global Investment
BV
Hidroelectricidad
del Pacífico S de RL
de Cv
Enel Green Power
Roadrunner Solar
Project Holdings LLC
99.00%
100.00%
1.00%
100.00% 100.00%
Enel Romania SA
Buftea
Romania
200,000.00
RON
Business services
Line-by-line
Enel SpA
100.00% 100.00%
Enel Rus Wind Azov
LLC
Enel Rus Wind
Generation LLC
Enel Rus Wind Kola
LLC
Moscow
Moscow
Murmansk City
Enel Russia PJSC
Yekaterinburg
Russian
Federation
Russian
Federation
Russian
Federation
Russian
Federation
200,000,000.00
RUB
Renewables
Line-by-line
Enel Russia PJSC
100.00% 56.43%
350,000.00
RUB
Energy services
Line-by-line
Enel Russia PJSC
100.00% 56.43%
10,000.00
RUB
Renewables
Line-by-line
Enel Russia PJSC
100.00% 56.43%
35,371,898,370.00
RUB
Electricity sale
Line-by-line
Enel SpA
56.43% 56.43%
Enel Salt Wells LLC
Fallon
USA
-
USD
Enel Saudi Arabia
Limited
Al Khobar
Saudi Arabia
1,000,000.00
SAR
Electricity generation
from renewable
resources
Management of
activities associated with
participation in tenders
called by the SEC for
the development of
smart metering and grid
automation
Line-by-line
Enel Geothermal
LLC
100.00% 100.00%
Line-by-line
e-distribuzione SpA
60.00% 60.00%
Enel Servicii
Comune SA
Bucharest
Romania
33,000,000.00
RON
Energy services
Line-by-line
Enel Solar Srl
Panama City
Panama
10,100.00
USD
Enel Sole Srl
Rome
Italy
4,600,000.00
EUR
Electricity generation
from renewable
resources
Public lighting systems
and services
Line-by-line
Line-by-line
Enel X Srl
100.00% 100.00%
Enel Soluções
Energéticas Ltda
Niterói
Brazil
42,863,000.00
BRL
Electricity generation
from renewable
resources
Line-by-line
Enel Stillwater LLC Wilmington
USA
Line-by-line
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Wilmington
USA
Niterói
Brazil
10,000.00
BRL
Enel Texkan Inc.
Wilmington
USA
100.00
USD
Zagreb
Croatia
2,240,000.00
HRK
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Electricity generation,
transmission, distribution,
purchase and sale
Line-by-line
Enel Brasil SA
100.00% 57.26%
Electricity generation
from renewable
resources
Electricity trading
Line-by-line
Chi Power Inc.
100.00% 100.00%
Line-by-line
Enel Global Trading
SpA
100.00% 100.00%
Bucharest
Romania
21,250,000.00
RON
Electricity sourcing and
trading
Line-by-line
Enel Energie
Muntenia SA
100.00% 78.00%
Beograd
Serbia
300,000.00
Buenos Aires
Argentina
14,011,100.00
EUR
ARS
Electricity trading
Electricity trading
Line-by-line
Line-by-line
Enel Global Trading
SpA
Enel Américas SA
Enel Argentina SA
100.00% 100.00%
55.00%
45.00%
57.26%
Niterói
Brazil
1,000,000.00
BRL
Electricity generation,
transmission, distribution,
purchase and sale
Line-by-line
Enel Brasil SA
100.00% 57.26%
Enel Surprise Valley
LLC
Enel Tecnologia de
Redes SA
Enel Trade doo in
liquidation
Enel Trade Romania
Srl
Enel Trade Serbia
doo
Enel Trading
Argentina Srl
Enel Trading Brasil
SA
386
E-Distribuţie Banat
SA
E-Distribuţie
Dobrogea SA
Enel Green Power
Panamá Srl
Energía y Servicios
South America SpA
50.00%
50.00%
99.01%
0.99%
51.00%
100.00%
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Soluções
Energéticas Ltda
Enel Geothermal
LLC
100.00%
0.00%
100.00%
100.00% 100.00%
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel Trading North
America LLC
Enel X Argentina
SAU
Enel X Australia
Holding (Pty) Ltd
Enel X Australia
(Pty) Ltd
Enel X Battery
Storage Limited
Partnership
Enel X Brasil
Gerenciamento de
Energia Ltda
Wilmington
USA
10,000,000.00
USD
Trading
Line-by-line
Buenos Aires
Argentina
127,800,000.00
ARS
Marketing and energy-
related services
Line-by-line
Melbourne
Australia
2,324,698.00
AUD
Renewable energy
Line-by-line
Melbourne
Australia
9,880.00
AUD
Renewable energy
Line-by-line
Vancouver
Canada
10,000.00
CAD
-
Line-by-line
Sorocaba
Brazil
117,240.00
BRL
Renewable energy
Line-by-line
Enel X Brasil SA
Niterói
Brazil
97,313,600.00
BRL
Electricity
Line-by-line
Enel North America
Inc.
Enel X International
Srl
Enel X International
Srl
Energy Response
Holdings (Pty) Ltd
Enel X Canada
Holding Inc.
Enel X Canada Ltd
Enel X Ireland
Limited
EnerNOC Uk II
Limited
Central Geradora
Termelétrica
Fortaleza SA
Enel Brasil SA
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
0.01%
99.99%
100.00%
0.00%
100.00%
100.00%
0.00%
100.00%
57.26%
Enel X Canada
Holding Inc.
Vancouver
Canada
1,000.00
CAD
Holding
Line-by-line
Enel X Canada Ltd
100.00% 100.00%
Enel X Canada Ltd
Mississauga
Canada
1,000.00
CAD
Renewable energy
Line-by-line
Enel X International
Srl
100.00% 100.00%
Enel X Chile SpA
Santiago
Enel X College Ave.
Project LLC
Boston
Chile
USA
3,800,000,000.00
CLP
Services
Line-by-line
Enel Chile SA
100.00% 61.93%
-
USD
Holding
Line-by-line
Enel X MA Holdings
LLC
100.00% 100.00%
Bogotá
Colombia
5,000,000,000.00
COP
Installation, maintenance
and repair of electronic
plant
Line-by-line
Codensa SA ESP
100.00% 27.66%
Shanghai
China
3,500,000.00
USD
Electric mobility
Line-by-line
5,000.00
USD
Renewable energy
Line-by-line
100.00
USD
Holding
Line-by-line
1,000,000.00
EUR
Services
Line-by-line
Enel X Srl
100.00% 100.00%
Enel X France SAS
Paris
France
1,000.00
EUR
-
Line-by-line
-
USD
Holding
Line-by-line
Enel X Colombia
SAS
Enel X Energy
(Shanghai) Co. Ltd
Enel X Federal LLC
Lutherville
Enel X Finance
Partner LLC
Enel X Financial
Services Srl
Lutherville
Rome
USA
USA
Italy
USA
Italy
Enel X Hayden Rowe
St. Project LLC
Enel X International
Srl
Enel X Ireland
Limited
Enel X Italia SpA
Enel X Japan K.K.
Boston
Rome
Dublin
Rome
Tokyo
100,000.00
EUR
Holding
Line-by-line
Enel X Srl
100.00% 100.00%
Ireland
100,000.00
EUR
Renewable energy
Line-by-line
Enel X International
Srl
100.00% 100.00%
Italy
200,000.00
EUR
Energy services
Line-by-line
Enel X Srl
100.00% 100.00%
Japan
165,000,000.00
JPY
Renewable energy
Line-by-line
Enel X Korea Limited
Seoul
Korea del Sud
1,200,000,000.00
KRW
Renewable energy
Line-by-line
Enel X MA Holdings
LLC
Enel X Mobility
Romania Srl
Lutherville
USA
100.00
USD
Holding
Line-by-line
Bucharest
Romania
937,800.00
RON
Energy services
Line-by-line
Enel X Mobility Srl
Rome
Enel X Morrissey
Blvd. Project LLC
Lutherville
Italy
USA
100.00
USD
Holding
Line-by-line
Enel X New Zealand
Limited
Enel X North
America Inc.
Wellington
New Zealand
313,606.00
AUD
Renewable energy
Line-by-line
Lutherville
USA
1,000.00
USD
Renewable energy
Line-by-line
100,000.00
EUR
Electric mobility
Line-by-line
Enel X Srl
100.00% 100.00%
Enel X International
Srl
100.00% 100.00%
Enel X North
America Inc.
Enel X North
America Inc.
100.00% 100.00%
100.00% 100.00%
Enel X International
Srl
Enel X Finance
Partner LLC
100.00% 100.00%
100.00% 100.00%
Enel X International
Srl
Enel X International
Srl
Enel X Finance
Partner LLC
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Enel X International
Srl
Enel X Srl
99.00%
1.00%
100.00%
Enel X Finance
Partner LLC
100.00% 100.00%
Energy Response
Holdings (Pty) Ltd
Enel X International
Srl
100.00% 100.00%
100.00% 100.00%
387
Attachments
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enel X Norway AS
Porsgrunn
Norway
1,000,000.00
NOK
Services
Line-by-line
Enel X International
Srl
100.00% 100.00%
Enel X Perú SAC
San Miguel
Peru
3,005,000.00
SOL
Electric mobility
Line-by-line
Enel Perú SAC
100.00% 57.26%
Enel X Polska Sp.
Zo.O.
Warsaw
Poland
5,000.00
PLN
Renewable energy
Line-by-line
Enel X Romania Srl
Bucharest
Romania
234,450.00
RON
Energy services
Line-by-line
Enel X Rus LLC
Moscow
Russian
Federation
8,000,000.00
RUB
-
Line-by-line
Enel X Ireland
Limited
Enel X International
Srl
Enel X Srl
Enel X International
Srl
100.00% 100.00%
99.00%
1.00%
100.00%
99.00% 99.00%
Enel X Srl
Rome
Italy
1,050,000.00
EUR
Holding. Energy services Line-by-line
Enel SpA
100.00% 100.00%
Enel X Services India
Private Limited
Enel X Singapore
Pte Ltd
Enel X Taiwan Co.
Ltd
Mumbai City
India
45,000.00
INR
Engineering and
consulting services
Line-by-line
Singapore
Singapore
199,999.00
EUR
Energy services
Line-by-line
Taipei City
Taiwan
65,000,000.00
TWD
Renewable energy
Line-by-line
Enel X Uk Limited
London
United Kingdom
10,001.00
GBP
Renewable energy
Line-by-line
Enel X International
Srl
Enel X North
America Inc.
Enel X International
Srl
Enel X Ireland
Limited
Enel X International
Srl
100.00%
0.00%
100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Enel.si Srl
Rome
Italy
5,000,000.00
EUR
Enelco SA
Maroussi
Greece
60,108.80
EUR
Riyadh
Saudi Arabia
5,000,000.00
SAR
Plant engineering and
energy services
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Line-by-line
Enel X Srl
100.00% 100.00%
Line-by-line
Enel Investment
Holding BV
75.00% 75.00%
Line-by-line
Enelpower SpA
51.00% 51.00%
Niterói
Brazil
5,068,000.00
BRL
Electrical engineering
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Energía y Servicios
South America SpA
100.00%
0.00%
100.00%
Enelpower SpA
Milan
Italy
2,000,000.00
EUR
Design, development
and maintenance of
engineering plants
Line-by-line
Enel SpA
100.00% 100.00%
San Miguel
Peru
6,463,000.00
SOL
Electricity generation
from renewable
resources
Line-by-line
Ceuta
Spain
65,000.00
EUR
Electricity supply
Line-by-line
Tarragona
Spain
-
EUR
Electricity generation and
supply
Line-by-line
Madrid
Spain
3,300.00
EUR
Renewable
Line-by-line
Enel Green Perú
SAC
Enel Green Power
Perú SAC
Energía y Servicios
South America SpA
Empresa de
Alumbrado Eléctrico
de Ceuta SA
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SL
Enel Green Power
SpA
0.01%
99.99%
99.99%
0.00%
100.00% 67.50%
100.00% 70.10%
100.00% 70.10%
100.00% 100.00%
Rome
Italy
4,840,000.00
EUR
Mexico City
Mexico
50,000.00
MXN
San José
Costa Rica
10,000.00
CRC
Mexico City
Mexico
33,452,769.00
MXN
Mexico City
Mexico
673,583,489.00
MXN
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
SpA
99.00% 99.00%
Marketing and electricity-
related services
Line-by-line
Enel Green Power
Costa Rica SA
100.00% 100.00%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Equity
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
60.80% 20.00%
60.80% 20.00%
Enelpower
Contractor And
Development Saudi
Arabia Ltd
Enelpower do Brasil
Ltda
Energética Monzón
SAC
Energía Ceuta XXI
Comercializadora De
Referencia SA
Energía Eléctrica del
Ebro SA (Sociedad
Unipersonal)
Energia Eólica Alto
del Llano SLU
Energia Eolica Srl -
EN.EO. Srl
Energía Global de
México (Enermex)
SA de Cv
Energía Global
Operaciones Srl
Energía Limpia de
Amistad SA de Cv
Energía Limpia de
Palo Alto SA de Cv
388
Consolidated Annual Report 2019
Company name
Headquarters
Country
Share capital
Currency Activity
Energía Limpia de
Puerto Libertad S de
RL de Cv
Mexico City
Mexico
2,953,980.00
MXN
Energía Marina SpA
Santiago
Chile
2,404,240,000.00
CLP
Energía Neta Sa
Caseta Llucmajor
SL (Sociedad
Unipersonal)
Palma de
Mallorca
Spain
9,000.00
EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Consolidation
method
Held by
%
holding
Group %
holding
Line-by-line
Equity
Enel Green Power
México S de RL
de Cv
Enel Rinnovabile SA
de Cv
Enel Green Power
Chile Ltda
0.01%
99.99%
100.00%
25.00% 15.48%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Energías de Aragón
I SL
Energías de Graus
SL
Zaragoza
Spain
3,200,000.00
EUR
Electricity transmission,
distribution and sale
Line-by-line
Barcelona
Spain
1,298,160.00
EUR
Hydroelectric plants
Line-by-line
Energía Nueva de
Iguu S de RL de Cv
Energía Nueva
Energía Limpia
México S de RL
de Cv
Energía XXI
Comercializadora de
Referencia SL
Energía y Servicios
South America SpA
Mexico City
Mexico
51,879,307.00
MXN
Mexico City
Mexico
5,339,650.00
MXN
Madrid
Spain
2,000,000.00
EUR
Santiago
Chile
142,091,084.73
USD
Energías Alternativas
del Sur SL
Las Palmas de
Gran Canaria
Spain
546,919.10
EUR
Energías Especiales
de Careón SA
Santiago
de Compostela
Spain
270,450.00
EUR
Energías Especiales
de Peña Armada SA
Energías Especiales
del Alto Ulla SA
Energías Especiales
del Bierzo SA
Madrid
Spain
963,300.00
EUR
Madrid
Spain
19,594,860.00
EUR
Torre del Bierzo
Spain
1,635,000.00
EUR
Energías Renovables
La Mata SA de Cv
Energie Electrique
de Tahaddart SA
Mexico City
Mexico
656,615,400.00
MXN
Marrakech
Morocco
750,400,000.00
MAD
Energotel AS
Bratislava
Slovakia
2,191,200.00
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
México S de RL
de Cv
Energía Nueva
Energía Limpia
México S de RL
de Cv
Enel Green Power
Guatemala SA
Enel Green Power
SpA
99.90%
99.91%
0.01%
0.04%
99.96%
100.00%
Marketing and electricity-
related services
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Endesa Energía SA
100.00% 70.10%
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Line-by-line
Line-by-line
Enel Green Power
España SL
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SL
Enel Green Power
España SL
54.95% 38.52%
100.00% 70.10%
66.67% 46.73%
77.00% 53.98%
Line-by-line
Enel Green Power
España SL
80.00% 56.08%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Equity
Line-by-line
Enel Green Power
España SL
Enel Green Power
México S de RL
de Cv
Energía Nueva de
Iguu S de RL de Cv
Endesa Generación
SA
Slovenské elektrárne
AS
50.00% 35.05%
99.00%
1.00%
100.00%
32.00% 22.43%
20.00%
6.60%
Combined-cycle
generation plants
Equity
Operation of optical fiber
network
Equity
EUR
EUR
ENergy Hydro Piave
Srl in liquidation
Energy Response
Holdings (Pty) Ltd
Energy Storage
Resources LLC
Belluno
Italy
800,000.00
Electricity purchasing
and sale
Line-by-line
Enel Produzione SpA
51.00% 51.00%
Melbourne
Australia
630,451.00
AUD
Renewable energy
Line-by-line
Houston
USA
10.00
USD
Holding
Equity
Enel X Australia
Holding (Pty) Ltd
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00% 100.00%
10.00% 10.00%
389
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Enerlive Srl
Rome
Italy
6,520,000.00
EUR
Electricity generation
from renewable
resources
Line-by-line
Maicor Wind Srl
100.00% 100.00%
EnerNOC GmbH
Munich
Germany
25,000.00
EUR
Renewable energy
Line-by-line
Dublin
Ireland
100,000.00
EUR
Renewable energy
Line-by-line
London
United Kingdom
21,000.00
GBP
Renewable energy
Line-by-line
Enel X Uk Limited
100.00% 100.00%
EnerNOC Ireland
Limited
EnerNOC Uk II
Limited
Entech (China)
Information
Technology Co. Ltd
Entech Utility
Service Bureau Inc.
Envatios Promoción
I SLU
Envatios Promoción
II SLU
Envatios Promoción
III SLU
Envatios Promoción
XX SLU
Eólica del Cierzo
SLU
Eólica del
Principado SAU
Eólica Valle del
Ebro SA
Eólicas de la
Patagonia SA
Eólicas de
Lanzarote SL
Eolo Energie
Corleone
Campofiorito Srl
EPM Eólica Dolores
SA de Cv
Shenzhen
China
1,500.00
EUR
Renewable energy
Equity
Lutherville
USA
1,500.00
USD
Renewable energy
Line-by-line
Seville
Seville
Seville
Seville
Zaragoza
Spain
Spain
Spain
Spain
Spain
3,000.00
EUR
Photovoltaic systems
Line-by-line
3,000.00
EUR
Photovoltaic systems
Line-by-line
3,000.00
EUR
Photovoltaic systems
Line-by-line
3,000.00
EUR
Photovoltaic systems
Line-by-line
225,000.00
EUR
Renewable energy
Line-by-line
Gijón - Asturias
Spain
60,000.00
EUR
Zaragoza
Spain
3,561,342.50
EUR
Eólica Zopiloapan SA
de Cv
Mexico City
Mexico
1,877,201.54
MXN
Eólicas
de Agaete SL
Las Palmas de
Gran Canaria
Eólicas de
Fuencaliente SA
Las Palmas de
Gran Canaria
Eólicas de
Fuerteventura AIE
Puerto del
Rosario
Spain
240,400.00
EUR
Spain
216,360.00
EUR
Spain
-
EUR
Enel X North
America Inc.
Enel X Ireland
Limited
100.00% 100.00%
100.00% 100.00%
EnerNOC Uk II
Limited
Enel X North
America Inc.
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
México S de RL
de Cv
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
España SL
50.00% 50.00%
100.00% 100.00%
100.00% 70.10%
100.00% 70.10%
100.00% 70.10%
100.00% 70.10%
100.00% 70.10%
100.00% 70.10%
50.50% 35.40%
56.98%
96.48%
39.50%
80.00% 56.08%
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
40.00% 28.04%
50.00% 35.05%
40.00% 28.04%
50.00% 35.05%
Enel Green Power
SpA
Enel Rinnovabile SA
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
Endesa Red
SA (Sociedad
Unipersonal)
100.00% 100.00%
99.00%
1.00%
100.00%
50.00% 35.05%
Line-by-line
Enel Green Power
España SL
55.00% 38.56%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Equity
Equity
Equity
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Buenos Aires
Argentina
480,930.00
ARS
Las Palmas de
Gran Canaria
Spain
1,758,000.00
EUR
Electricity generation and
distribution
Equity
Eólicas de Tenerife
AIE
Santa Cruz de
Tenerife
Eólicas de Tirajana
SL
Las Palmas de
Gran Canaria
Spain
420,708.40
EUR
Spain
3,000.00
EUR
Line-by-line
Enel Green Power
España SL
60.00% 42.06%
Rome
Italy
10,000.00
EUR
Line-by-line
Mexico City
Mexico
100.00
MXN
Electricity generation,
transmission, distribution
sale and purchase
Line-by-line
Empresa Energía SA
Cadiz
Spain
2,500,000.00
EUR
Electricity supply
Equity
390
Consolidated Annual Report 2019 European Energy
Exchange AG
Explotaciones
Eólicas de Escucha
SA
Explotaciones
Eólicas El Puerto SA
Explotaciones
Eólicas Santo
Domingo de Luna
SA
Explotaciones
Eólicas Saso Plano
SA
Explotaciones
Eólicas Sierra
Costera SA
Explotaciones
Eólicas Sierra La
Virgen SA
Fenner Wind
Holdings LLC
Fótons de Santo
Anchieta Energias
Renováveis SA
Fotovoltaica
Yunclillos SLU
Fourmile Wind
Project LLC
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Essex Company LLC
Boston
USA
-
USD
Electricity generation
from renewable
resources
Equity
Leipzig
Germany
40,050,000.00
EUR
Commodity trading
-
Zaragoza
Spain
3,505,000.00
EUR
Teruel
Spain
3,230,000.00
EUR
Zaragoza
Spain
100,000.00
EUR
Zaragoza
Spain
5,488,500.00
EUR
Zaragoza
Spain
8,046,800.00
EUR
Zaragoza
Spain
4,200,000.00
EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
EGPNA REP Hydro
Holdings LLC
Enel Global Trading
SpA
Enel Green Power
España SL
100.00% 50.00%
2.33%
2.33%
70.00% 49.07%
Line-by-line
Line-by-line
Enel Green Power
España SL
73.60% 51.59%
Line-by-line
Enel Green Power
España SL
51.00% 35.75%
Line-by-line
Enel Green Power
España SL
65.00% 45.57%
Line-by-line
Enel Green Power
España SL
90.00% 63.09%
Line-by-line
Enel Green Power
España SL
90.00% 63.09%
Dover
Finsec Lab Ltd
Tel Aviv
Flagpay Srl
Milan
USA
Israel
Italy
100.00
100.00
USD
Holding
Line-by-line
Enel Kansas LLC
100.00% 100.00%
ILS
Any legal activity
Equity
Enel X Srl
30.00% 30.00%
10,000.00
EUR
Services
Line-by-line
PayTipper SpA
100.00% 55.00%
Flat Rock Wind
Project LLC
Andover
USA
Florence Hills LLC
Minneapolis
USA
1.00
-
USD
USD
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Maracanaú
Brazil
577,000.00
BRL
Line-by-line
Granada
Spain
3,000.00
EUR
Photovoltaic plants
Line-by-line
Andover
USA
1.00
Fowler Hydro LLC
Wilmington
USA
Freedom Energy
Storage LLC
Andover
USA
-
-
USD
USD
USD
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Front Marítim
del Besòs SL
Barcelona
Spain
9,000.00
EUR
Real estate
Fulcrum LLC
Wilmington
USA
-
USD
Furatena Solar 1 SLU
Seville
Spain
3,000.00
EUR
Galaxy Wind Project
LLC
Andover
USA
1.00
USD
Garob Wind Farm
(RF) (Pty) Ltd
Gauteng
Republic of South
Africa
100.00
ZAR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Equity
Equity
Line-by-line
Gas y Electricidad
Generación SAU
Palma de
Mallorca
Spain
213,775,700.00
EUR
Electricity sale
Line-by-line
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
España SL
Tradewind Energy
Inc.
Enel North America
Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Endesa Generación
SA
EGPNA REP Hydro
Holdings LLC
100.00% 100.00%
100.00% 70.10%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
61.37% 43.02%
100.00% 50.00%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Enel Green Power
RSA 2 (RF) (Pty) Ltd
Endesa Generación
SA
60.00% 60.00%
100.00% 70.10%
391
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Gasoducto Atacama
Argentina SA
Sucursal Argentina
Buenos Aires
Argentina
Gauley Hydro LLC
Wilmington
USA
Gauley River
Management LLC
Willison
USA
Gauley River Power
Partners LLC
Summersville
USA
-
-
1.00
-
ARS
Natural gas transport
Line-by-line
Enel Generación
Chile SA
100.00% 57.93%
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Genability Inc.
San Francisco
USA
6,010,074.72
USD
Energy services
Equity
Generadora de
Occidente Ltda
Generadora Eólica
Alto Pacora Srl
Generadora
Montecristo SA
Generadora Solar
Tolé Srl
Geotérmica del
Norte SA
Guatemala City Guatemala
16,261,697.33
GTQ
Panama City
Panama
10,100.00
USD
Guatemala City Guatemala
3,820,000.00
GTQ
Panama City
Panama
10,100.00
USD
Santiago
Chile
326,577,419,702.00
CLP
Gibson Bay Wind
Farm (RF) (Pty) Ltd
Gauteng
Republic of South
Africa
1,000.00
ZAR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Girgarre Solar Farm
(Pty) Ltd
Barangaroo,
Sydney
Australia
-
AUD
Renewables
Line-by-line
Global Coal Limited
London
United Kingdom
4,042,375.00
Globyte SA
San José
Costa Rica
900,000.00
GBP
CRC
Coal trading and related
activities
Marketing and electricity-
related services
-
-
Gnl Chile SA
Santiago
Chile
3,026,160.00
USD
Design and LNG supply Equity
Goldcup 18936 AB
Stockholm
Sweden
50,000.00
SEK
Services
Line-by-line
Goodwell Wind
Project LLC
Goodyear Lake
Hydro LLC
Wilmington
USA
Wilmington
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Gorona del Viento El
Hierro SA
Santa Cruz de
Tenerife
Spain
30,936,736.00
EUR
Development and
maintenance of El Hierro
generation plant
Equity
EGPNA REP Hydro
Holdings LLC
Enel X North
America Inc.
Enel Green Power
Guatemala SA
Enel Green Power
SpA
Enel Green Power
Panamá Srl
Energía y Servicios
South America SpA
Enel Green Power
Guatemala SA
Enel Green Power
SpA
Enel Green Power
Panamá Srl
Energía y Servicios
South America SpA
Enel Green Power
Chile Ltda
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
Girgarre Holdings
(Pty) Ltd
Enel Global Trading
SpA
Enel Green Power
Costa Rica SA
Enel Generación
Chile SA
Enel X International
Srl
Origin Goodwell
Holdings LLC
Enel North America
Inc.
Unión Eléctrica de
Canarias Generación
SAU
100.00% 50.00%
50.00% 50.00%
1.00%
99.00%
99.01%
0.99%
0.01%
99.99%
99.01%
0.99%
100.00%
100.00%
100.00%
100.00%
84.59% 52.39%
60.00% 60.00%
100.00% 100.00%
4.68%
4.68%
10.00% 10.00%
33.33% 19.31%
100.00% 100.00%
100.00% 20.00%
100.00% 100.00%
23.21% 16.27%
Andover
USA
-
USD
Seville
Spain
3,006.00
EUR
Andover
USA
1.00
USD
Bucharest
Romania
1,145,400.00
RON
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Endesa Generación
II SA
100.00% 70.10%
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
Enel Green Power
Romania Srl
Enel Green Power
SpA
100.00% 100.00%
100.00%
0.00%
100.00%
Grand Prairie Solar
Project LLC
Guadarranque Solar
4 SL Unipersonal
Gusty Hill Wind
Project LLC
GV Energie
Rigenerabili ITAL-
RO Srl
392
Consolidated Annual Report 2019 Haystack Wind
Project LLC
Heartland Farms
Wind Project LLC
Helio Atacama Cinco
SpA
Hidroeléctrica de
Catalunya SL
Hidroeléctrica de
Ourol SL
Hidroelectricidad
del Pacífico S de RL
de Cv
Hidromondego
- Hidroeléctrica do
Mondego Lda
High Lonesome
Storage LLC
High Lonesome
Wind Holdings LLC
High Lonesome
Wind Power LLC
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Hadley Ridge LLC
Minneapolis
USA
Hamilton County
Solar Project LLC
Andover
USA
Harvest Ridge Wind
Project LLC
Andover
USA
Hastings Solar LLC Wilmington
USA
-
1.00
1.00
-
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Hatch Data Inc.
San Francisco
USA
10,000.00
USD
Any legal activity
-
Enel X North
America Inc.
5.00%
5.00%
Andover
USA
Wilmington
USA
1.00
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
USD
-
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Santiago
Chile
1,000,000.00
CLP
Electricity generation,
trading and transmission
Line-by-line
Enel Green Power
del Sur SpA
100.00% 61.93%
Barcelona
Spain
126,210.00
EUR
Lugo
Spain
1,608,200.00
EUR
Colima
Mexico
30,890,736.00
MXN
Electricity transmission
and distribution
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity distribution
and sale
Equity
Line-by-line
Line-by-line
Hidroflamicell SL
Barcelona
Spain
78,120.00
EUR
Hidroinvest SA
Buenos Aires
Argentina
55,312,093.00
ARS
Holding
Line-by-line
Lisbon
Portugal
3,000.00
EUR
Hydroelectric power
Line-by-line
Endesa Red
SA (Sociedad
Unipersonal)
Enel Green Power
España SL
Enel Green Power
México S de RL
de Cv
Hidroeléctrica de
Catalunya SL
Enel Américas SA
Enel Argentina SA
Endesa Generación
Portugal SA
Endesa Generación
SA
100.00% 70.10%
30.00% 21.03%
99.99% 99.99%
75.00% 52.58%
41.94%
54.76%
10.00%
90.00%
55.37%
70.10%
Andover
Wilmington
Boston
USA
USA
USA
100.00
100.00
1.00
USD
Holding. Electricity sale Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
Holding
Line-by-line
Enel Kansas LLC
100.00% 100.00%
High Shoals LLC
Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Equity
High Street
Corporation (Pty) Ltd Melbourne
Australia
2.00
AUD
Renewable energy
Line-by-line
USD
Renewable energy
Line-by-line
High Lonesome
Wind Holdings LLC
EGPNA REP Hydro
Holdings LLC
100.00% 100.00%
100.00% 50.00%
Energy Response
Holdings (Pty) Ltd
100.00% 100.00%
Highfalls Hydro
Company Inc.
Hilltopper Wind
Holdings LLC
Wilmington
USA
3,000.00
USD
Electricity generation
from renewable
resources
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Wilmington
USA
1,000.00
USD
Renewable energy
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Hispano Generación
de Energía Solar SL
Jerez de los
Caballeros
Spain
3,500.00
EUR
Hope Creek LLC
Crestview
USA
Hope Ridge Wind
Project LLC
Andover
USA
-
1.00
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
51.00% 35.75%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Electricity generation
and sale from renewable
resources
Line-by-line
Hubject GmbH
Berlin
Germany
65,943.00
EUR
E-mobility
-
Tradewind Energy
Inc.
Enel X International
Srl
100.00% 100.00%
12.50% 12.50%
393
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Hydro Development
Group Acquisition
LLC
Wilmington
USA
1.00
USD
5,000.00
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
AFS
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Enel North America
Inc.
100.00% 100.00%
22,520,000.00
EUR
Hydro-electric activities
Equity
Enel SpA
1.00%
1.00%
Hydro Energies
Corporation
Willison
Idrosicilia SpA
Milan
I-EM SAT Ltd
Didcot,
Oxfordshire
USA
Italy
United Kingdom
100.00
GBP
ICT
Equity
I-EM Srl
100.00% 30.00%
I-EM Srl
Turin
Italy
28,571.43
EUR
Design and development Equity
Enel X Srl
30.00% 30.00%
Ifx Networks
Argentina Srl
Ifx Networks Chile
SA
Ifx Networks
Colombia SAS
Buenos Aires
Argentina
2,260,551.00
ARS
Santiago
Chile
5,761,374,444.00
CLP
Bogotá
Colombia
15,734,959,000.00
COP
Ifx Networks LLC
Wilmington
USA
80,848,653.00
Ifx Networks Ltd
Tortola
Virgin Islands
100,000.00
Ifx Networks
Panama SA
Ifx/eni - Spc III Inc.
Ifx/eni - Spc IV Inc.
Ifx/eni - Spc Panama
Inc.
Panama City
Panama
21,000.00
Tortola
Tortola
Virgin Islands
50,000.00
Virgin Islands
50,000.00
Tortola
Virgin Islands
50,000.00
Ifx/eni - Spc V Inc.
Tortola
Virgin Islands
50,000.00
USD
USD
USD
USD
USD
USD
USD
-
-
-
-
-
-
-
-
-
-
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Ifx/eni - Spc V Inc.
Minority Stock
Holding Corp.
Ifx/eni - Spc IV Inc.
Servicios de Internet
Eni Chile Ltda
Ifx Networks
Panama SA
Ifx/eni - Spc III Inc.
99.85%
0.15%
41.00%
59.00%
58.33%
41.67%
20.60%
20.60%
20.60%
Ufinet Latam SLU
100.00% 20.60%
Ifx Networks LLC
100.00% 20.60%
Ifx/eni - Spc Panama
Inc.
100.00% 20.60%
Ifx Networks Ltd
100.00% 20.60%
Ifx Networks Ltd
100.00% 20.60%
Ifx Networks Ltd
100.00% 20.60%
Ifx Networks Ltd
100.00% 20.60%
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
14.29% 10.01%
Bilbao
Spain
84,141.68
EUR
Information on
infrastructure of Inkolan
associates
Inkolan Información
y Coordinación de
obras AIE
International Endesa
BV
International
Multimedia
University Srl (in
bankrupticy)
Inversora Codensa
SAS
Inversora Dock
Sud SA
Isamu Ikeda Energia
SA
Amsterdam
Netherlands
15,428,520.00
EUR
Holding
Line-by-line
Endesa SA
100.00% 70.10%
Rome
Italy
24,000.00
EUR
Training
-
Enel Italia SpA
13.04% 13.04%
Bogotá
Colombia
5,000,000.00
COP
Electricity transmission
and distribution
Line-by-line
Codensa SA ESP
100.00% 27.66%
Buenos Aires
Argentina
828,941,660.00
ARS
Holding
Line-by-line
Enel Américas SA
57.14% 32.72%
Niterói
Brazil
45,474,475.77
BRL
Electricity generation
and sale
Line-by-line
Italgest Energy
(Pty) Ltd
Gauteng
Republic of South
Africa
1,000.00
ZAR
Jack River LLC
Minneapolis
USA
Jessica Mills LLC
Minneapolis
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Juicenet GmbH
Berlin
Germany
25,000.00
EUR
Renewables
Line-by-line
Juicenet Ltd
London
United Kingdom
1.00
GBP
-
Line-by-line
Julia Hills LLC
Minneapolis
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
394
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
RSA (Pty) Ltd
100.00% 100.00%
100.00% 100.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Chi Minnesota Wind
LLC
Enel X International
Srl
Enel X International
Srl
Chi Minnesota Wind
LLC
51.00% 51.00%
100.00% 100.00%
100.00% 100.00%
51.00% 51.00%
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Kirklarelí Eolíko Enerjí
Elektrík Üretím Ve
Tícaret Anoním
Şírketí
Istanbul
Turkey
9,000,000.00
TRY
Kelley’s Falls LLC
Wilmington
USA
-
USD
Wilmington
USA
100.00
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
AFS
Line-by-line
Kings River Hydro
Company Inc
Kingston Energy
Storage LLC
Kinneytown Hydro
Company Inc.
Kino Contractor SA
de Cv
Kino Facilities
Manager SA de Cv
Kirklareli̇ Eolíko
Enerjí Elektrík Üretím
Ve Tícaret Anoním
Şírketí
Kongul Enerjí Sanayí
Ve Tícaret Anoním
Şírketí
Korea Line
Corporation
Wilmington
USA
-
USD
Renewables
Line-by-line
Wilmington
USA
100.00
USD
Mexico City
Mexico
100.00
MXN
Mexico City
Mexico
100.00
MXN
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Istanbul
Turkey
5,250,000.00
TRY
-
Line-by-line
Istanbul
Turkey
125,000,000.00
TRY
Electricity generation
from renewable
resources
Line-by-line
Seoul
South Korea
122,132,520,000.00
KRW
Shipping
-
Kromschroeder SA
Barcelona
Spain
627,126.00
EUR
Services
Equity
LaChute Hydro
Company LLC
Wilmington
USA
Lake Emily Solar LLC Wilmington
USA
Lake Pulaski Solar
LLC
Land Run Wind
Project LLC
Lawrence Creek
Solar LLC
Liberty Energy
Storage LLC
Lindahl Wind
Holdings LLC
Wilmington
USA
Dover
Minneapolis
USA
USA
Andover
USA
Wilmington
USA
Lindahl Wind Project
LLC
Wilmington
USA
-
-
-
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
100.00
USD
Renewables
Line-by-line
USD
-
Line-by-line
Line-by-line
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
-
-
-
-
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel North America
Inc.
Enel North America
Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel North America
Inc.
Enel Green Power
México S de RL
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
Enel Green Power
México S de RL
de Cv
Hidroelectricidad
del Pacífico S de Rl
de Cv
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Global Trading
SpA
Endesa Medios
y Sistemas
SL (Sociedad
Unipersonal)
EGPNA REP Hydro
Holdings LLC
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
99.00%
100.00%
1.00%
99.00%
100.00%
1.00%
100.00% 100.00%
100.00% 100.00%
0.25%
0.25%
29.26% 20.51%
100.00% 50.00%
Aurora Distributed
Solar LLC
Sundance Wind
Project LLC
Aurora Distributed
Solar LLC
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00% 51.00%
100.00% 100.00%
100.00% 51.00%
100.00% 100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Line-by-line
EGPNA Preferred
Wind Holdings LLC
100.00% 100.00%
Line-by-line
Lindahl Wind
Holdings LLC
100.00% 100.00%
395
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Little Elk Wind
Holdings LLC
Little Elk Wind
Project LLC
Littleville Power
Company Inc.
Wilmington
USA
Oklahoma City
USA
-
-
USD
USD
Boston
USA
100.00
USD
Litus Energy Storage
LLC
Andover
USA
-
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Livister Guatemala
SA
Guatemala City Guatemala
1,299,900.00
GTQ
-
Livister Honduras SA Tegucigalpa
Honduras
2,500,000.00
HNL
Holding
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Line-by-line
Little Elk Wind
Holdings LLC
100.00% 100.00%
AFS
Line-by-line
Equity
Equity
Enel North America
Inc.
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
100.00% 100.00%
100.00% 100.00%
Ufinet Guatemala SA
Ufinet Latam SLU
2.00%
98.00%
20.60%
Livister Guatemala
SA
Livister Latam SLU
0.40%
99.60%
20.60%
Livister Latam SLU
Madrid
Spain
3,000.00
EUR
-
Equity
Ufinet Latam SLU
100.00% 20.60%
Llano Sánchez Solar
Power One Srl
Panama City
Panama
10,020.00
USD
Electricity generation
from renewable
resources
Line-by-line
Lone Pine Wind Inc.
Calgary
Canada
Lone Pine Wind
Project LP
Lower Saranac
Hydro Partners LLC
Lower Saranac
Hydro LLC
Calgary
Canada
Wilmington
USA
Wilmington
USA
Lower Valley LLC
Wilmington
USA
Lowline Rapids LLC Wilmington
USA
-
-
-
-
-
-
Enel Green Power
Panamá Srl
Energía y Servicios
South America SpA
Enel Green Power
Canada Inc.
Enel Green Power
Canada Inc.
EGPNA REP Hydro
Holdings LLC
99.80%
0.20%
100.00%
10.00% 10.00%
10.00% 10.00%
100.00% 50.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Equity
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
CAD
Renewable energy
-
CAD
Renewables
Line-by-line
Equity
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Luz Andes Ltda
Santiago
Chile
1,224,348.00
CLP
Electricity and fuel
transmission, distribution
and sale
Line-by-line
Enel Distribución
Chile SA
100.00% 61.36%
Lybian Italian Joint
Company - Azienda
Libico-Italiana (A.L.I)
Tripoli
Libya
1,350,000.00
EUR
Electricity generation
-
Enelpower SpA
0.33%
0.33%
Maicor Wind Srl
Rome
Italy
20,850,000.00
EUR
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Malaspina Energy
Scarl in liquidation
Bergamo
Marengo Solar LLC Wilmington
Marte Srl
Rome
Italy
USA
Italy
100,000.00
EUR
Electricity sale
Line-by-line
YouSave SpA
100.00% 100.00%
1.00
USD
Photovoltaic
Line-by-line
Enel Kansas LLC
100.00% 100.00%
6,100,000.00
EUR
Electricity generation
from renewable
resources
Line-by-line
Marudhar Wind
Energy Private
Limited
Gurugram
India
100,000.00
INR
Electricity transmission,
distribution and sale
Line-by-line
Más Energía S de RL
de Cv
Mexico City
Mexico
61,872,926.00
MXN
Electricity generation
from renewable
resources
Line-by-line
396
Enel Green Power
SpA
Enel Green Power
India Private Limited
(formerly BLP
Energy Private
Limited)
Enel Green Power
México S de RL
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
100.00% 100.00%
100.00% 100.00%
99.99%
0.01%
100.00%
Consolidated Annual Report 2019
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Mason Mountain
Wind Project LLC
Wilmington
USA
-
USD
Matrigenix (Pty) Ltd
Gauteng
Republic of
South Africa
1,000.00
ZAR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Padoma Wind Power
LLC
100.00% 100.00%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00% 100.00%
Wilmington
USA
1.00
USD
-
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Burgos
Spain
60,100.00
EUR
Environmental studies
Equity
Nuclenor SA
50.00% 17.53%
Andover
USA
Metro Wind LLC
Minneapolis
USA
1.00
-
USD
USD
Mexicana de
Hidroelectricidad
Mexhidro S de RL
de Cv
Mexico City
Mexico
181,728,901.00
MXN
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Line-by-line
Enel Green Power
México S de RL
de Cv
99.99% 99.99%
Mibgas SA
Madrid
Spain
3,000,000.00
EUR
Gas market operator
-
Endesa SA
1.35%
0.95%
Casablanca
Morocco
145,000,000.00
MAD
Plant development,
design, construction and
operation
Equity
Nareva Enel Green
Power Morocco SA
70.00% 35.00%
Wilmington
USA
-
USD
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Minicentrales
Acequia Cinco Villas
AIE
Ejea de los
Caballeros
Spain
3,346,993.04
EUR
Zaragoza
Spain
1,202,000.00
EUR
Hydro-electric plants
Zaragoza
Spain
1,820,000.00
EUR
Hydro-electric plants
Equity
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
-
-
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
5.39%
3.78%
15.00% 10.52%
36.50% 25.59%
McBride Wind
Project LLC
Medidas
Ambientales SL
Merit Wind Project
LLC
Midelt Wind Farm
SA
Mill Shoals Hydro
Company LLC
Minicentrales
del Canal de las
Bárdenas AIE
Minicentrales del
Canal Imperial-Gallur
SL
Minority Stock
Holding Corp.
Tortola
Virgin
Islands
50,000.00
USD
-
Equity
Ifx Networks Ltd
100.00% 20.60%
Mira Energy (Pty)
Ltd
Johannesburg
Republic of
South Africa
100.00
ZAR
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00% 100.00%
Miranda Plataforma
Logística SA
Burgos
Spain
1,800,000.00
EUR
Regional development
-
Nuclenor SA
0.22%
0.08%
Missisquoi LLC
Wilmington
USA
Montrose Solar LLC Wilmington
USA
-
-
Mountrail Wind
Project LLC
Andover
USA
1.00
USD
USD
USD
MSN Solar Tres SpA
Santiago
Chile
1,000,000.00
CLP
Mucho Viento Wind
Project LLC
Andover
USA
Muskegon County
Solar Project LLC
Muskegon Green
Wind Project LLC
Andover
USA
Andover
USA
Mustang Run Wind
Project LLC
Andover
USA
1.00
1.00
1.00
1.00
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Plant construction
- Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Equity
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Enel Green Power
Chile Ltda
100.00% 61.93%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
397
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Napolean Wind
Project LLC
Nareva Enel Green
Power Morocco SA
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Casablanca
Morocco
98,750,000.00
MAD
Holding. Electricity sale Equity
Navalvillar Solar SL
Madrid
Spain
3,000.00
EUR
Photovoltaic
Line-by-line
Netell
Telecomunicações
SA
Nevkan Renewables
LLC
Newbury Hydro
Company LLC
Ngonye Power
Company Limited
Barueri
Brazil
29,800,000.00
BRL
Telecommunications
-
Wilmington
USA
Andover
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
AFS
Lusaka
Zambia
10.00
ZMW Electricity sale
Line-by-line
Nojoli Wind Farm
(RF) (Pty) Ltd
Gauteng
Republic of
South Africa
10,000,000.00
ZAR
North Canal
Waterworks
Boston
USA
North English Wind
Project LLC
Andover
USA
Andover
USA
Andover
USA
Andover
USA
Wilmington
USA
North Rock Wind
LLC
Northland Wind
Project LLC
Northstar Wind
Project LLC
Northwest Hydro
LLC
Notch Butte Hydro
Company Inc.
-
1.00
1.00
1.00
-
-
USD
USD
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Tradewind Energy
Inc.
Enel Green Power
Morocco SARLAU
Enel Green Power
España SL
Ufinet Brasil
Administração Ltda
100.00% 100.00%
50.00% 50.00%
100.00% 70.10%
60.00% 12.36%
Line-by-line
Enel Nevkan Inc.
100.00% 100.00%
Enel North America
Inc.
Enel Green Power
Solar Ngonye SpA
(formerly Enel Green
Power Africa Srl)
100.00% 100.00%
80.00% 80.00%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
60.00% 60.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Chi West LLC
100.00% 100.00%
Enel North America
Inc.
Endesa Generación
SA
100.00% 100.00%
50.00% 35.05%
Wilmington
USA
100.00
USD
Line-by-line
Nuclenor SA
Burgos
Spain
102,000,000.00
EUR
Nuclear plants
Equity
Nuove Energie Srl
Porto
Empedocle
Italy
5,204,028.73
EUR
Construction and
management of
LNG regasification
infrastructure
Line-by-line
Enel Global Trading
SpA
100.00% 100.00%
Nuxer Trading SA
Montevideo
Uruguay
80,000.00
UYU
Electricity trading
Line-by-line
Enel Brasil SA
100.00% 57.26%
Gauteng
Republic of
South Africa
1,000.00
ZAR
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
RSA 2 (RF) (Pty) Ltd
51.00% 51.00%
Wilmington
USA
1.00
USD
Holding
Line-by-line
Ochrana A
Bezpecnost Se SRO
Kalná Nad
Hronom
Slovakia
33,193.92
EUR
Security services
Equity
Valencia
Spain
3,000.00
EUR
Photovoltaic
Line-by-line
Enel X North
America Inc.
Slovenské elektrárne
AS
Enel Green Power
España SL
100.00% 100.00%
100.00% 33.00%
100.00% 70.10%
Nxuba Wind Farm
(RF) (Pty) Ltd
Nyc Storage (353
Chester) Spe LLC
Olivum Pv Farm
01 SLU
Omip - Operador
do Mercado Ibérico
(Portugal) Sgps SA
Electricity market
operator
Installation, maintenance
and repair of electronic
plant
-
Endesa SA
5.00%
3.51%
Equity
Enel SpA
50.00% 50.00%
Lisbon
Portugal
2,610,000.00
EUR
OpEn Fiber SpA
Milan
Italy
250,000,000.00
EUR
398
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Madrid
Spain
1,999,998.00
EUR
Wilmington
USA
Origin Wind Energy
LLC
Wilmington
USA
-
-
USD
USD
Osage Wind
Holdings LLC
Wilmington
USA
100.00
USD
Osage Wind LLC
Wilmington
USA
-
USD
Electricity market
operator
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
-
Endesa SA
5.00%
3.51%
Equity
Equity
EGPNA Wind
Holdings 1 LLC
Origin Goodwell
Holdings LLC
100.00% 20.00%
100.00% 20.00%
Line-by-line
Enel Kansas LLC
50.00% 50.00%
Line-by-line
Osage Wind
Holdings LLC
100.00% 50.00%
Enel North America
Inc.
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
España SL
100.00% 100.00%
100.00% 100.00%
33.33% 23.36%
Wilmington
USA
100.00
USD
AFS
Istanbul
Turkey
11,250,000.00
TRY
-
Line-by-line
Oxagesa AIE
Alcaniz
Spain
6,010.00
Oyster Bay Wind
Farm (RF) (Pty) Ltd
Gauteng
Republic of
South Africa
1,000.00
Padoma Wind Power
LLC
Elida
USA
Dallas
USA
-
-
EUR
ZAR
USD
USD
Cogeneration of electricity
and heat
Equity
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
RSA 2 (RF) (Pty) Ltd
60.00% 60.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Valencia
Spain
3,000.00
EUR
Photovoltaic systems
Line-by-line
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
España SL
Tradewind Energy
Inc.
100.00% 70.10%
100.00% 100.00%
Paravento SL
Lugo
Spain
3,006.00
EUR
Line-by-line
Enel Green Power
España SL
90.00% 63.09%
Madrid
Spain
1,183,100.00
EUR
Madrid
Spain
1,313,100.00
EUR
Mexico City
Mexico
100.00
MXN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Equity
Line-by-line
Mexico City
Mexico
100.00
MXN
Mexico City
Mexico
100.00
MXN
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Open Range Wind
Project LLC
Operador del
Mercado Ibérico
de Energía - Polo
Español SA
Origin Goodwell
Holdings LLC
Ottauquechee Hydro
Company Inc.
Ovacik Eolíko Enerjí
Elektrík Üretím Ve
Tícaret Anoním
Şírketí
Palo Alto Farms
Wind Project LLC
Pampinus Pv Farm
01 SLU
Paradise Creek Wind
Project LLC
Parc Eòlic La
Tossa-La Mola d’en
Pascual SL
Parc Eòlic Los
Aligars SL
Parque Amistad II SA
de Cv
Parque Amistad III
SA de Cv
Parque Amistad IV
SA de Cv
Enel Green Power
España SL
30.00% 21.03%
Enel Green Power
España SL
Enel Rinnovabile SA
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
Enel Rinnovabile SA
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
Enel Rinnovabile SA
de Cv
Hidroelectricidad
del Pacífico S de RL
de Cv
30.00% 21.03%
99.00%
1.00%
99.00%
1.00%
99.00%
1.00%
100.00%
100.00%
100.00%
399
Attachments Madrid
Spain
6,540,000.00
EUR
Cogeneration of electricity
and heat
Line-by-line
Enel Green Power
España SL
75.50% 52.93%
Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Parque Eólico
A Capelada
SL (Sociedad
Unipersonal)
Parque Eólico BR-1
SAPI de Cv
La Coruña
Spain
5,857,704.33
EUR
Mexico City
Mexico
-
MXN
Parque Eólico
Carretera de Arinaga
SA
Las Palmas de
Gran Canaria
Spain
1,603,000.00
EUR
La Coruña
Spain
3,606,072.60
EUR
Madrid
Spain
120,400.00
EUR
La Coruña
Spain
552,920.00
EUR
Parque Eólico de
Santa Lucía SA
Las Palmas de
Gran Canaria
Parque Eólico Finca
de Mogán SA
Santa Cruz de
Tenerife
Spain
901,500.00
EUR
Spain
3,810,340.00
EUR
Electricity generation
from renewable
resources
Plant construction
- Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Cogeneration of electricity
and heat
Line-by-line
Madrid
Spain
3,006.00
EUR
Wind plants
Line-by-line
Madrid
Spain
3,006.00
EUR
Wind plants
Line-by-line
Salvador
Brazil
4,096,626.00
BRL
Electricity generation
and sale from renewable
resources
Line-by-line
Buenos Aires
Argentina
6,500,000.00
ARS
Line-by-line
Madrid
Spain
7,193,970.00
EUR
Santiago
Chile
20,878,010,000.00
CLP
Santiago
Chile
566,096,564.00
CLP
Salvador
Brazil
1,946,507.00
BRL
Renewables
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Equity
Line-by-line
Salvador
Brazil
6,986,993.00
BRL
Mexico City
Mexico
100.00
MXN
Parque Solar
Cauchari IV SA
San Salvador de
Jujuy
Argentina
500,000.00
ARS
400
Parque Eólico de
Barbanza SA
Parque Eólico de
Belmonte SA
Parque Eólico de
Farlan SLU
Parque Eólico de San
Andrés SA
Parque Eólico
Montes de las Navas
SA
Parque Eólico
Muniesa SL
Parque Eólico
Palmas dos Ventos
Ltda
Parque Eólico
Pampa SA
Parque Eólico Sierra
del Madero SA
Parque Eólico Taltal
SpA
Parque Eólico Valle
de los Vientos SpA
Parque Eólico Ventos
da Boa Vista Ltda
Parque Eólico Zeus
Ltda
Parque Salitrillos SA
de Cv
Enel Green Power
México S de RL
de Cv
Enel Rinnovabile SA
de Cv
Enel Green Power
España SL
Enel Green Power
España SL
Parque Eólico de
Barbanza SA
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Enel Green Power
España SL
Parque Eólico de
Santa Lucía SA
Enel Green Power
España SL
0.50%
25.50%
25.00%
80.00% 56.08%
75.00% 52.58%
50.17% 35.17%
100.00% 70.10%
82.00% 57.48%
65.67%
1.00%
46.50%
90.00% 63.09%
Enel Green Power
España SL
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Desenvolvimento
Ltda
Enel Green Power
Argentina SA
100.00% 70.10%
100.00%
100.00%
0.00%
100.00% 100.00%
Enel Green Power
España SL
Enel Chile SA
Enel Green Power
Chile Ltda
Enel Chile SA
Enel Green Power
Chile Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
Enel Green Power
Argentina SA
Energía y Servicios
South America SpA
58.00% 40.66%
0.01%
99.99%
0.01%
99.99%
61.93%
61.93%
100.00% 100.00%
100.00% 100.00%
60.80% 20.00%
95.00%
5.00%
100.00%
Parque Eólico Punta
de Teno SA
Santa Cruz de
Tenerife
Spain
528,880.00
EUR
Line-by-line
Enel Green Power
España SL
52.00% 36.45%
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Parque Solar Don
José SA de Cv
Parque Solar
Fotovoltaico
Sabanalarga SAS
Parque Solar
Fotovoltaico
Valledupar SAS
Parque Solar Maipú
SpA
Parque Solar
Villanueva Tres SA
de Cv
Parque Talinay
Oriente SA
Mexico City
Mexico
100.00
MXN
Bogotá
Colombia
231,000,000.00
COP
Bogotá
Colombia
227,000,000.00
COP
Santiago
Chile
404,212,503.00
CLP
Mexico City
Mexico
306,024,631.13
MXN
Santiago
Chile
66,092,165,170.93
CLP
Parronal SpA
Santiago
Chile
1,000,000.00
CLP
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Line-by-line
Electricity generation
and sale from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Plant development,
design, construction and
operation
Line-by-line
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
Enel Green Power
Colombia SAS ESP
Enel Green Power
Colombia SAS ESP
Enel Green Power
Chile Ltda
Enel Green Power
del Sur SpA
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
Enel Green Power
Chile Ltda
Enel Green Power
SpA
Enel Green Power
del Sur SpA
60.80% 20.00%
100.00% 100.00%
100.00% 100.00%
1.00%
99.00%
61.93%
60.80% 20.00%
60.91%
34.56%
72.29%
100.00% 61.93%
Pastis - Centro
Nazionale per la
ricerca e lo sviluppo
dei materiali SCPA
(in liquidation)
Paynesville Solar
LLC
Brindisi
Italy
2,065,000.00
EUR
R&D
-
Enel Italia SpA
1.14%
1.14%
Minnesota
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
PayTipper Network
Srl
Cascina
PayTipper SpA
Milan
Italy
Italy
40,000.00
EUR
Services
Line-by-line
PayTipper SpA
100.00% 55.00%
3,000,000.00
EUR
Services
Line-by-line
Enel X Srl
55.00% 55.00%
Ashkelon
Israel
-
ILS
R&D
-
Pego
Portugal
50,000.00
EUR
Electricity sale
Equity
PDP Technologies
Ltd
Pegop - Energia
Eléctrica SA
Pelzer Hydro
Company LLC
Wilmington
USA
-
USD
PH Chucás SA
San José
Costa Rica
100,000.00
CRC
PH Don Pedro SA
San José
Costa Rica
100,001.00
CRC
PH Guácimo SA
San José
Costa Rica
50,000.00
CRC
PH Río Volcán SA
San José
Costa Rica
100,001.00
CRC
Pincher Creek LP
Alberta
Canada
CAD
Renewables
Line-by-line
Pine Island
Distributed Solar
LLC
Planta Eólica
Europea SA
Wilmington
USA
USD
Line-by-line
Seville
Spain
1,198,532.32
EUR
-
-
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Line-by-line
Line-by-line
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Enel Global
Infrastructure and
Networks Srl
Endesa Generación
Portugal SA
Endesa Generación
SA
EGPNA REP Hydro
Holdings LLC
Enel Green Power
Costa Rica SA
Energía y Servicios
South America SpA
Enel Green Power
Costa Rica SA
4.75%
4.75%
0.02%
49.98%
35.05%
100.00% 50.00%
40.31%
24.69%
65.00%
33.44% 33.44%
Enel Green Power
Costa Rica SA
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Aurora Distributed
Solar LLC
34.32% 34.32%
99.00%
1.00%
100.00%
100.00% 51.00%
Line-by-line
Enel Green Power
Costa Rica SA
65.00% 65.00%
Line-by-line
Enel Green Power
España SL
56.12% 39.34%
401
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Pomerado Energy
Storage LLC
PowerCrop
Macchiareddu Srl
Wilmington
USA
1.00
USD
Bologna
Italy
100,000.00
EUR
PowerCrop Russi Srl
Bologna
Italy
100,000.00
EUR
Bologna
Italy
4,000,000.00
EUR
Minneapolis
USA
Prairie Rose Wind
LLC
New York
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Equity
Equity
Equity
Equity
Equity
Niterói
Brazil
36,965,444.64
BRL
Electricity generation
and sale
Line-by-line
Barcelona
Spain
60,101.22
EUR
Hydroelectric plants
Equity
Lérida
Spain
8,400,000.00
EUR
Electricity generation and
distribution
-
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
PowerCrop SpA
(formerly PowerCrop
Srl)
PowerCrop SpA
(formerly PowerCrop
Srl)
Enel Green Power
SpA
100.00% 100.00%
100.00% 50.00%
100.00% 50.00%
50.00% 50.00%
Prairie Rose Wind
LLC
100.00% 20.00%
EGPNA REP Wind
Holdings LLC
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
España SL
100.00% 20.00%
100.00% 100.00%
30.00% 21.03%
Endesa SA
8.43%
5.91%
Madrid
Spain
12,020.00
EUR
Mexico City
Mexico
89,708,835.00
MXN
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Line-by-line
Enel Green Power
México S de RL
de Cv
99.99% 99.99%
Madrid
Spain
601,000.00
EUR
Alicante
Spain
27,000.00
EUR
Desalinization and water
supply
Equity
Electricity generation
from renewable
resources
Equity
San Miguel
Peru
1,000.00
SOL
Electricity generation
Line-by-line
Jakarta
Indonesia
10,001,500.00
USD
Line-by-line
Pulida Energy (RF)
(Pty) Ltd
Gauteng
Republic of
South Africa
10,000,000.00
ZAR
Pyrites Hydro LLC
Albany
USA
-
USD
Line-by-line
Enel Green Power
RSA (Pty) Ltd
52.70% 52.70%
Quatiara Energia SA
Niterói
Brazil
13,766,118.96
BRL
Electricity sale
Line-by-line
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Endesa SA
45.00% 31.55%
Enel Green Power
España SL
33.33% 23.37%
Enel Green Power
Partecipazioni
Speciali Srl
Energía y Servicios
South America SpA
Enel Green Power
SpA
99.90%
100.00%
0.10%
90.00% 90.00%
EGPNA REP Hydro
Holdings LLC
Enel Green Power
Brasil Participações
Ltda
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Tradewind Energy
Inc.
100.00% 50.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
Andover
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Andover
USA
Andover
USA
1.00
-
USD
USD
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
PowerCrop SpA
(formerly PowerCrop
Srl)
Prairie Rose
Transmission LLC
Primavera Energia
SA
Productora de
Energías SA
Productora Eléctrica
Urgelense SA
Promociones
Energéticas del
Bierzo SL
Proveedora de
Electricidad de
Occidente S de RL
de Cv
Proyecto Almería
Mediterráneo SA
Proyectos
Universitarios de
Energías Renovables
SL
Proyectos y
Soluciones
Renovables SAC
PT Enel Green
Power Optima Way
Ratai
Queens Energy
Storage LLC
Ranchland Solar
Project LLC
Ranchland Wind
Project LLC
402
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Rattlesnake Creek
Holdings LLC
Rausch Creek Wind
Project LLC
Delaware
USA
Andover
USA
1.00
1.00
USD
-
Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Reaktortest Sro
Trnava
Slovakia
66,389.00
EUR
R&D
Equity
Slovenské elektrárne
AS
49.00% 16.17%
Red
Centroamericana de
Telecomunicaciones
SA
Red Dirt Wind
Holdings I LLC
Red Dirt Wind
Holdings LLC
Red Dirt Wind
Project LLC
Red Fox Wind
Project LLC
Redes y
Telecomunicaciones
S de RL de Cv
Reftinskaya GRES
LLC
Panama City
Panama
2,700,000.00
USD
Telecommunications
-
Enel SpA
11.11%
11.11%
Dover
Wilmington
Dover
USA
USA
USA
Wilmington
USA
100.00
USD
Holding
Line-by-line
Enel North America
Inc.
100.00% 100.00%
-
1.00
1.00
USD
Renewables
Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
Electricity generation
from renewable
resources
Line-by-line
Red Dirt Wind
Holdings LLC
100.00% 100.00%
USD
-
Line-by-line
Enel Kansas LLC
100.00% 100.00%
San Pedro Sula
Honduras
82,370,000.00
HNL
Telecommunications
Livister Honduras SA
80.00% 16.48%
Pgt Reftinskii
Russian
Federation
10,000.00
RUB
Line-by-line
Enel Russia PJSC
100.00% 56.43%
Electricity generation
and sale
Electricity generation
from renewable
resources
Renovables de
Guatemala SA
Guatemala
City
Guatemala
1,924,465,600.00
GTQ
Line-by-line
Renovables La
Pedrera SLU
Renovables
Mediavilla SLU
Riverbend Farms
Wind Project LLC
Zaragoza
Zaragoza
Spain
Spain
3,000.00
EUR
Photovoltaic systems
Line-by-line
3,000.00
EUR
Photovoltaic systems
Line-by-line
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
Guatemala SA
Enel Green Power
SpA
Enel Green Power
España SL
Enel Green Power
España SL
Tradewind Energy
Inc.
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
0.01%
99.99%
100.00%
100.00% 70.10%
100.00% 70.10%
100.00% 100.00%
99.00%
1.00%
100.00%
Riverview LP
Alberta
Canada
Roadrunner Solar
Project Holdings LLC
Andover
USA
-
-
Roadrunner Solar
Project LLC
Andover
USA
100.00
USD
CAD
Renewables
Line-by-line
USD
Plant construction
- Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Line-by-line
Enel Roadrunner
Solar Project
Holdings LLC
100.00% 100.00%
Rochelle Solar LLC
Coral Springs
USA
Rock Creek Hydro
LLC
Rock Creek Wind
Holdings I LLC
Rock Creek Wind
Holdings II LLC
Rock Creek Wind
Holdings LLC
Rock Creek Wind
Project LLC
Rockhaven Wind
Project LLC
Rocky Caney
Holdings LLC
Wilmington
USA
Dover
Dover
USA
USA
Wilmington
USA
Clayton
USA
Andover
USA
Oklahoma City
USA
1.00
-
100.00
100.00
-
1.00
1.00
1.00
USD
Photovoltaic
Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
Electricity generation
from renewable
resources
Line-by-line
USD
Holding
Line-by-line
USD
Holding
Line-by-line
USD
Electricity generation
from renewable
resources
Line-by-line
USD
Holding
Line-by-line
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Enel North America
Inc.
Enel North America
Inc.
Rock Creek Wind
Holdings LLC
EGPNA Preferred
Holdings II LLC
Rock Creek Wind
Holdings LLC
Tradewind Energy
Inc.
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
USD
Renewables
Equity
Enel Kansas LLC
20.00% 20.00%
403
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Rocky Caney Wind
LLC
Rocky Ridge Wind
Project LLC
Albany
USA
Oklahoma City
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Rodnikovskaya WPS Moscow
Russian
Federation
6,010,000.00
RUB
Renewables
Line-by-line
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Rolling Farms Wind
Project LLC
RSL Telecom
(Panamá) SA
Equity
Enel Kansas LLC
20.00% 20.00%
Rocky Caney Wind
LLC
Enel Green Power
Rus Limited Liability
Company
Tradewind Energy
Inc.
100.00% 20.00%
100.00% 100.00%
100.00% 100.00%
Panama City
Panama
10,000.00
USD
-
Equity
Ufinet Latam SLU
100.00% 20.60%
Rusenergosbyt LLC
Moscow
Rusenergosbyt
Siberia LLC
Krasnoyarsk
City
Russian
Federation
Russian
Federation
Rustler Wind Project
LLC
Andover
USA
Ruthton Ridge LLC Minneapolis
USA
18,000,000.00
RUB
Electricity trading
Equity
Enel SpA
49.50% 49.50%
4,600,000.00
RUB
Electricity sale
Equity
Rusenergosbyt LLC
50.00% 24.75%
1.00
-
USD
USD
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Saburoy SA
Montevideo
Uruguay
400,000.00
UYU
-
Equity
Ifx Networks LLC
100.00% 20.60%
Sacme SA
Buenos Aires
Argentina
12,000.00
ARS
Wilmington
USA
-
USD
Monitoring of electricity
system
Equity
Electricity generation
from renewable
resources
AFS
Seville
Zaragoza
Spain
Spain
462,185.98
EUR
Hydroelectric plants
Equity
60,000.00
EUR
Renewable energy
Line-by-line
Empresa
Distribuidora Sur SA
- Edesur
Enel North America
Inc.
Enel Green Power
España SL
Enel Green Power
España SL
50.00% 20.65%
100.00% 100.00%
50.00% 35.05%
66.67% 46.73%
Wilmington
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Padoma Wind Power
LLC
100.00% 100.00%
Nevinnomyssk
Russian
Federation
10,571,300.00
RUB
Cogeneration of electricity
and heat
Line-by-line
Enel Russia PJSC
100.00% 56.43%
Seville
Spain
207,340.00
EUR
Services
Equity
Dover
USA
100.00
USD
Renewable energy
Line-by-line
Enel Green Power
España SL
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
45.00% 31.55%
100.00% 100.00%
Slovenské elektrárne
AS
100.00% 33.00%
Se Služby
Inžinierskych Stavieb
SRO
Kalná Nad
Hronom
Slovakia
200,000.00
EUR
Services
Equity
Madrid
Spain
3,010.00
EUR
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Mexico City
Mexico
3,000.00
MXN
Electricity generation
from renewable
resources
Line-by-line
Santiago
Chile
2,768,688,228.00
CLP
-
Equity
Enel Green Power
Guatemala SA
Energía Nueva
Energía Limpia
México S de RL
de Cv
Ifx Networks Ltd
Ifx/eni - Spc IV Inc.
0.01%
99.99%
0.01%
99.90%
100.00%
20.60%
Rome
Bergamo
Italy
Italy
10,000,000.00
EUR
Electricity sale
Line-by-line
Enel SpA
100.00% 100.00%
100,000.00
EUR
Electricity sale
Equity
YouSave SpA
27.50% 27.50%
Seguidores
Solares Planta
2 SL (Sociedad
Unipersonal)
Servicio de
Operación y
Mantenimiento para
Energías Renovables
S de RL de Cv
Servicios de Internet
Eni Chile Ltda
Servizio Elettrico
Nazionale SpA
Setyl Srl
404
Salmon Falls Hydro
LLC
Salto de San Rafael
SL
San Francisco de
Borja SA
San Juan Mesa
Wind Project II LLC
Sanatorium-
preventorium
Energetik LLC
Santo Rostro
Cogeneración SA
Saugus River Energy
Storage LLC
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Seven Cowboy Wind
Project LLC
Shiawassee Wind
Project LLC
Andover
USA
Wilmington
USA
Shield Energy
Storage Project LLC
Wilmington
USA
Sierra Energy
Storage LLC
Camden
USA
1.00
1.00
-
-
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
USD
-
Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
USD
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Analysis, design and
research in thermal
technology
Equity
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel Innovation
Hubs Srl
Enel Green Power
España SL
Enel Green Power
España SL
100.00% 100.00%
51.00% 51.00%
41.55% 41.55%
16.70% 11.71%
28.13% 19.72%
Piacenza
Italy
697,820.00
EUR
Granada
Spain
44,900.00
EUR
Electricity generation
Equity
Madrid
Spain
175,200.00
EUR
Electricity generation
Equity
Zaragoza
Spain
61,000.00
EUR
Electricity generation
and sale from renewable
resources
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Zaragoza
Spain
61,000.00
EUR
Wind plants
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
La Coruña
Spain
2,007,750.00
EUR
Derio
Spain
3,006.00
EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
España SL
96.00% 67.30%
Line-by-line
Enel Green Power
España SL
100.00% 70.10%
Andover
USA
1.00
Los Angeles
USA
Wilmington
USA
-
-
USD
USD
USD
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Equity
Equity
Slate Creek Hydro
Company LLC
95.00% 47.50%
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Amsterdam
Netherlands
25,010,000.00
EUR
Holding
Equity
Enel Produzione SpA
50.00% 50.00%
Bratislava
Slovakia
4,505,000.00
EUR
Electricity supply
Equity
Bratislava
Slovakia
1,269,295,724.66
EUR
Electricity sale
Equity
Moravská
Ostrava
Czech Republic
295,819.00
CZK
Electricity supply
Equity
2,184,000.00
EUR
Services
-
Slovenské elektrárne
AS
100.00% 33.00%
Slovak Power
Holding BV
66.00% 66.00%
Slovenské elektrárne
AS
100.00% 33.00%
Servizio Elettrico
Nazionale SpA
10.00% 10.00%
-
-
USD
Renewable energy
Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
Electricity generation
from renewable
resources
Line-by-line
Texkan Wind LLC
100.00% 100.00%
405
Smart P@Per SpA
Potenza
Smoky Hill Holdings
II LLC
Wilmington
Smoky Hills Wind
Farm LLC
Topeka
Italy
USA
USA
SIET - Società
Informazioni
Esperienze
Termoidrauliche SpA
Sistema Eléctrico de
Conexión Montes
Orientales SL
Sistema Eléctrico de
Conexión Valcaire SL
Sistemas
Energéticos
Alcohujate
SA (Sociedad
Unipersonal)
Sistemas
Energéticos
Campoliva
SA (Sociedad
Unipersonal)
Sistemas
Energéticos Mañón
Ortigueira SA
Sistemas
Energéticos
Sierra del Carazo
SL (Sociedad
Unipersonal)
Skyview Wind
Project LLC
Slate Creek Hydro
Associates LP
Slate Creek Hydro
Company LLC
Slovak Power
Holding BV
Slovenské elektrárne
- Energetické Služby
SRO
Slovenské elektrárne
AS
Slovenské elektrárne
Česká Republika
SRO
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Smoky Hills Wind
Project II LLC
Snyder Wind Farm
LLC
Lenexa
USA
Hermleigh
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Nevkan Renewables
LLC
100.00% 100.00%
Line-by-line
Texkan Wind LLC
100.00% 100.00%
Socibe Energia SA
Niterói
Brazil
12,969,032.25
BRL
Electricity generation
and sale
Line-by-line
Enel Green Power
Brasil Participações
Ltda
100.00% 100.00%
Santiago
Chile
5,738,046,495.00
CLP
Financial investment
Line-by-line
Enel Chile SA
57.50% 35.61%
999,270.48
EUR
Gas market operator
-
Endesa SA
1.66%
1.16%
Bilbao
Seville
Spain
Spain
4,507,590.78
EUR
Electricity sale
Line-by-line
Seville
Spain
1,643,000.00
EUR
Seville
Spain
2,404,048.42
EUR
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Enel Green Power
España SL
Enel Green Power
España SL
64.75% 45.39%
50.00% 35.05%
Line-by-line
Enel Green Power
España SL
60.00% 42.06%
Cordoba
Spain
86,063.20
EUR
Regional development
-
Bogotá
Colombia
89,714,600.00
COP
Port construction and
management
Line-by-line
Endesa Generación
SA
1.82%
1.27%
Emgesa SA ESP
Inversora Codensa
SAS
Sociedad Portuaria
Central Cartagena
SA
94.94%
5.05%
0.00%
27.75%
Milan
Italy
37,419,179.00
EUR
Energy and infrastructure
engineering
-
Enel Produzione SpA
17.65% 17.65%
Sociedad Agrícola de
Cameros Ltda
Sociedad Bilbao Gas
Hub SA
Sociedad Eólica de
Andalucía SA
Sociedad Eólica El
Puntal SL
Sociedad Eólica Los
Lances SA
Sociedad para el
Desarrollo de Sierra
Morena Cordobesa
SA
Sociedad Portuaria
Central Cartagena
SA
Società di sviluppo,
realizzazione
e gestione del
gasdotto Algeria-
Italia via Sardegna
SpA (Galsi SpA)
Società Elettrica
Trigno Srl
Trivento
Italy
100,000.00
EUR
Soetwater Wind
Farm (RF) (Pty) Ltd
Gauteng
Republic of South
Africa
1,000.00
ZAR
Soliloquoy Ridge
LLC
Somersworth Hydro
Company Inc.
Sona Enerjí Üretím
Anoním Şírketí
Minneapolis
USA
-
USD
Wilmington
USA
100.00
USD
Istanbul
Turkey
50,000.00
TRY
Sotavento Galicia SA
Santiago de
Compostela
Spain
601,000.00
EUR
South Rock Wind
Project LLC
Southwest
Transmission LLC
Andover
USA
1.00
Cedar Bluff
USA
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
USD
USD
USD
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
SpA
100.00% 100.00%
Line-by-line
Enel Green Power
RSA 2 (RF) (Pty) Ltd
60.00% 60.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
AFS
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Equity
Enel Green Power
Turkey Enerjí
Yatirimlari Anoním
Şírketí
Enel Green Power
España SL
100.00% 100.00%
36.00% 25.24%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Chi Minnesota Wind
LLC
100.00% 100.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
-
-
-
USD
Renewable energy
Line-by-line
Enel Kansas LLC
100.00% 100.00%
1.00
USD
Renewable energy
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Spartan Hills LLC
Minneapolis
USA
Stillman Valley Solar
LLC
Stillwater Woods Hill
Holdings LLC
Wilmington
Wilmington
USA
USA
406
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Sun River LLC
Bend
Sundance Wind
Project LLC
Dover
Tae Technologies Inc.
Pauling
Tauste Energía
Distribuida SL
Zaragoza
Tecnatom SA
Madrid
USA
USA
USA
Spain
Spain
Stipa Nayaá SA
de Cv
Mexico City
Mexico
1,811,016,348.00
MXN
Sublunary Trading
(RF) (Pty) Ltd
Bryanston
Republic of South
Africa
13,750,000.00
ZAR
Cadiz
Spain
12,020,240.00
EUR
Electricity generation
from renewable
resources
Line-by-line
Electricity generation
from renewable
resources
Line-by-line
Electricity distribution
and sale
Equity
Barcelona
Spain
2,800,000.00
EUR
Electricity distribution
Line-by-line
Suministradora
Eléctrica de Cádiz SA
Suministro de Luz y
Fuerza SL
Summit Energy
Storage Inc.
Wilmington
USA
1,000.00
USD
Enel Green Power
México S de RL
de Cv
Enel Green Power
Partecipazioni
Speciali Srl
Enel Green Power
RSA (Pty) Ltd
Endesa Red
SA (Sociedad
Unipersonal)
Hidroeléctrica de
Catalunya SL
ù55.21%
95.37%
40.16%
57.00% 57.00%
33.50% 23.48%
60.00% 42.06%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel North America
Inc.
75.00% 75.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
-
USD
100.00
USD
Renewable energy
Line-by-line
Enel Kansas LLC
100.00% 100.00%
53,207,936.90
USD
Electricity sale
-
Enel Produzione SpA
1.13%
1.13%
Tecnoguat SA
Guatemala City Guatemala
30,948,000.00
GTQ
Lisbon
Portugal
5,025,000.00
EUR
60,508.00
EUR
Renewable energy
Line-by-line
4,025,700.00
EUR
Electricity sale and
services
Electricity generation
from renewable
resources
Equity
Line-by-line
Electricity generation,
transmission and
distribution
Equity
Mexico City
Mexico
2,892,643,576.00
MXN
Renewable energy
Equity
Tejo Energia
- Produção e
Distribuição de
Energia Eléctrica SA
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
Enel Green Power
España SL
Endesa Generación
SA
Enel Green Power
SpA
51.00% 35.75%
45.00% 31.55%
75.00% 75.00%
Endesa Generación
SA
43.75% 30.67%
Enel Green Power
SpA
32.89% 32.90%
Teploprogress JSC
Sredneuralsk
Russian
Federation
128,000,000.00
RUB
Electricity sale
Line-by-line
Enel Russia PJSC
60.00% 33.86%
Termoeléctrica José
de San Martín SA
Buenos Aires
Argentina
500,006.00
ARS
Plant construction and
operation
Equity
Termoeléctrica
Manuel Belgrano SA
Buenos Aires
Argentina
500,006.00
ARS
Plant construction and
operation
Equity
Termotec Energía
AIE (in liquidation)
La Pobla de
Vallbona
Spain
481,000.00
EUR
Cogeneration of electricity
and heat
Equity
Testing Stand of
Ivanovskaya GRES
JSC
Komsomolsk
Russian
Federation
118,213,473.45
RUB
Studies, projects and
research
-
Central Dock Sud SA
Enel Generación
Costanera SA
Enel Generación El
Chocón SA
Central Dock Sud SA
Enel Generación
Costanera SA
Enel Generación El
Chocón SA
Enel Green Power
España SL
1.42%
5.33%
9.73%
18.85%
1.42%
5.33%
9.73%
18.85%
45.00% 31.55%
Enel Russia PJSC
1.65%
0.93%
Texkan Wind LLC
Andover
USA
-
USD
Electricity generation
from renewable
resources
Line-by-line
Enel Texkan Inc.
100.00% 100.00%
Thunder Ranch Wind
Holdings I LLC
Thunder Ranch Wind
Holdings LLC
Dover
Wilmington
Thunder Ranch Wind
Project LLC
Dover
USA
USA
USA
TKO Power LLC
Los Angeles
USA
100.00
USD
Holding
Line-by-line
Enel North America
Inc.
100.00% 100.00%
-
1.00
-
USD
Renewable energy
Line-by-line
Enel Kansas LLC
100.00% 100.00%
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Thunder Ranch Wind
Holdings LLC
100.00% 100.00%
Equity
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
407
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Tobivox (RF) (Pty) Ltd
Gauteng
Republic of South
Africa
10,000,000.00
ZAR
Electricity generation
from renewable
resources
Line-by-line
Toledo PV AIE
Madrid
Torrepalma Energy
1 SLU
Seville
Spain
Spain
26,887.96
EUR
Photovoltaic systems
Equity
3,100.00
EUR
Photovoltaic systems
Line-by-line
Enel Green Power
RSA (Pty) Ltd
Enel Green Power
España SL
Enel Green Power
España SL
60.00% 60.00%
33.33% 23.36%
100.00% 70.10%
Tradewind Energy
Inc.
Wilmington
USA
1,000.00
USD
Electricity generation
from renewable
resources
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Transmisora de
Energía Renovable
SA
Guatemala
City
Guatemala
233,561,800.00
GTQ
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
Guatemala SA
Enel Green Power
SpA
Generadora
Montecristo SA
Enel Generación
Chile SA
0.00%
100.00%
0.00%
100.00%
50.00% 28.97%
Santiago
Chile
4,404,446,151.00
CLP
Electricity transmission
and distribution
Equity
Buenos Aires
Argentina
100,000.00
ARS
Electricity generation,
transmission and
distribution
Line-by-line
Enel Argentina SA
Enel CIEN SA
0.00%
100.00%
57.26%
Girona
Spain
72,121.45
EUR
Electricity transmission
Line-by-line
Transmisora Eléctrica
de Quillota Ltda
Transportadora de
Energía SA-TESA
Transportes y
Distribuciones
Eléctricas SA
Triton Power
Company
Andover
USA
Tsar Nicholas LLC
Minneapolis
USA
TWE Franklin Solar
Project LLC
Andover
USA
-
-
-
TWE Rot DA LLC
Andover
USA
1.00
Twin Falls Hydro
Associates LP
Twin Falls Hydro
Company LLC
Seattle
USA
Wilmington
USA
Twin Lake Hills LLC Minneapolis
USA
Twin Saranac
Holdings LLC
Wilmington
USA
-
-
-
-
Edistribución
Redes Digitales
SL (Sociedad
Unipersonal)
Enel North America
Inc.
Highfalls Hydro
Company Inc.
Chi Minnesota Wind
LLC
73.33% 51.41%
2.00%
98.00%
100.00%
51.00% 51.00%
Line-by-line
Line-by-line
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Equity
Equity
Twin Falls Hydro
Company LLC
99.51% 49.76%
EGPNA REP Hydro
Holdings LLC
100.00% 50.00%
Line-by-line
Chi Minnesota Wind
LLC
51.00% 51.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
USD
USD
USD
USD
USD
USD
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Tyme Srl
Bergamo
Italy
100,000.00
EUR
Electricity sale
Equity
YouSave SpA
50.00% 50.00%
Tynemouth Energy
Storage Limited
London
United Kingdom
2.00
GBP
Services
Line-by-line
Ufinet Argentina SA Buenos Aires
Argentina
9,745,583.00
ARS
-
Equity
Ufinet Brasil
Administração Ltda
Ufinet Brasil
Participações Ltda
City of Santo
André, State of
São Paulo
City of Santo
André, State of
São Paulo
Brazil
45,784,638.00
BRL
Holding. Energy services -
Brazil
45,784,638.00
BRL
Holding
-
Enel Global Thermal
Generation Srl
Ufinet Latam SLU
Ufinet Panama SA
Ufinet Brasil
Participações Ltda
Ufinet Latam SLU
Ufinet Guatemala
SA
Ufinet Latam SLU
100.00% 100.00%
99.95%
0.05%
99.99%
0.01%
0.01%
99.99%
20.60%
20.60%
20.60%
Ufinet Chile SpA
Santiago
Chile
233,750,000.00
CLP
Ufinet Colombia SA
Bogotá
Colombia
1,180,000,000.00
COP
Ufinet Costa Rica SA
San José
Costa Rica
15,000.00
USD
-
-
-
Equity
Ufinet Latam SLU
100.00% 20.60%
Equity
Ufinet Guatemala SA
Ufinet Honduras SA
Ufinet Latam SLU
Ufinet Panama SA
0.00%
0.00%
90.00%
0.00%
18.54%
Equity
Ufinet Latam SLU
100.00% 20.60%
408
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Ufinet Ecuador
Ufiec SA
Ufinet El Salvador
SA de Cv
Quito
Ecuador
1,050,800.00
San Salvador
El Salvador
10,000.00
Ufinet Guatemala SA
Guatemala
City
Guatemala
7,500,000.00
Ufinet Honduras SA
Tegucigalpa
Honduras
194,520.00
Ufinet Latam SLU
Madrid
Spain
15,906,312.31
USD
USD
GTQ
HNL
EUR
Ufinet México S de
RL de Cv
Mexico City
Mexico
10,032,150.00
MXN
Ufinet Nicaragua SA Managua
Nicaragua
2,800,000.00
NIO
Ufinet Panama SA
Panama City
Republic of
Panama
3,500,000.00
Ufinet Paraguay SA
Asunción
Paraguay
13,960,000.00
Ufinet Perú SAC
Lima
Ufinet US LLC
Wilmington
Peru
USA
Ukuqala Solar (Pty)
Ltd
Gauteng
Republic of
South Africa
3,104,923.00
1,000.00
1,000.00
USD
USD
SOL
USD
ZAR
-
-
-
-
-
-
-
-
-
-
-
Electricity generation
from renewable
resources
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Ufinet Guatemala SA
Ufinet Latam SLU
0.00%
100.00%
Ufinet Guatemala SA
Ufinet Latam SLU
Ufinet Latam SLU
Ufinet Panama SA
Ufinet Latam SLU
Ufinet Panama SA
0.01%
99.99%
99.99%
0.01%
99.99%
0.01%
20.60%
20.60%
20.60%
20.60%
Zacapa Sàrl
100.00% 20.60%
Ufinet Guatemala SA
Ufinet Latam SLU
Ufinet Guatemala SA
Ufinet Latam SLU
Ufinet Panama SA
0.01%
99.99%
0.50%
99.00%
0.50%
20.60%
20.60%
Ufinet Latam SLU
100.00% 20.60%
Ufinet Latam SLU
75.00% 15.45%
Ufinet Latam SLU
Ufinet Panama SA
100.00%
0.00%
20.60%
Line-by-line
Ufinet Latam SLU
100.00% 20.60%
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00% 100.00%
Unión Eléctrica de
Canarias Generación
SAU
Las Palmas de
Gran Canaria
Spain
190,171,520.00
EUR
Electricity sale
Line-by-line
Endesa Generación
SA
100.00% 70.10%
Upington Solar (Pty)
Ltd
Gauteng
Republic of South
Africa
1,000.00
ZAR
USB4 Wind Template
Andover
USA
-
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Enel Green Power
RSA (Pty) Ltd
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Řež
Czech Republic
524,139,000.00
CZK
R&D
Equity
Madrid
Spain
3,000.00
EUR
Photovoltaic
Line-by-line
Slovenské elektrárne
AS
Enel Green Power
España SL
27.77%
9.17%
100.00% 70.10%
Istanbul
Turkey
3,500,000.00
TRY
Plant construction
- Electricity generation
from renewable
resources
AFS
Enel SpA
100.00% 100.00%
Niterói
Brazil
7,315,000.00
BRL
Electricity sale
Line-by-line
Ustav Jaderného
Výzkumu Rez As
Valdecaballero
Solar SL
Vektör Enerjí Üretím
Anoním Şírketí
Ventos de Santa
Ângela Energias
Renováveis SA
Ventos de Santa
Esperança Energias
Renováveis SA
Ventos de São
Roque Energias
Renováveis SA
Vientos del Altiplano
S de RL de Cv
Villanueva Solar SA
de Cv
Niterói
Brazil
4,727,414.00
BRL
Maracanaú
Brazil
9,988,722.00
BRL
Mexico City
Mexico
1,455,854,094.00
MXN
Mexico City
Mexico
205,316,027.15
MXN
Viruleiros SL
Santiago de
Compostela
Spain
160,000.00
EUR
Walden Hydro LLC Wilmington
USA
Wapella Bluffs Wind
Project LLC
Andover
USA
-
1.00
USD
USD
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Enel Green Power
Brasil Participações
Ltda
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
Tenedora de Energía
Renovable Sol y
Viento SAPI de Cv
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
60.80% 20.00%
60.80% 20.00%
Line-by-line
Line-by-line
Equity
Equity
Line-by-line
Enel Green Power
España SL
67.00% 46.97%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
409
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Waseca Solar LLC
Waseca
USA
Weber Energy
Storage Project LLC
Wilmington
USA
-
-
USD
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Line-by-line
Line-by-line
Wespire Inc.
Boston
USA
1,625,000.00
USD
Energy services
Equity
West Faribault Solar
LLC
Wilmington
USA
West Hopkinton
Hydro LLC
Wilmington
USA
West Waconia Solar
LLC
Minnesota
USA
-
-
-
USD
USD
USD
Albany
USA
300.00
USD
Andover
USA
Andover
USA
Andover
USA
1.00
1.00
-
USD
USD
USD
Andover
USA
99.00
USD
Western New York
Wind Corporation
Wharton-El Campo
Solar Project LLC
White Cloud Wind
Project LLC
Whitney Hill Wind
Power LLC
Whitney Hill Wind
Power Holdings LLC
Wild Plains Wind
Project LLC
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Andover
USA
1.00
USD
Electricity generation
and sale from renewable
resources
Line-by-line
Wild Run LP
Alberta
Canada
10.00
CAD
Holding
Line-by-line
Wildcat Flats Wind
Project LLC
Willimantic Power
Corporation
Wind Belt Transco
LLC
Wind Parks Anatolis -
Prinias SA
Wind Parks Bolibas
SA
Wind Parks
Distomos SA
Andover
USA
1.00
USD
Hartford
USA
100.00
USD
Andover
USA
1.00
USD
Maroussi
Greece
1,208,188.00
EUR
Maroussi
Greece
551,500.00
EUR
Maroussi
Greece
556,500.00
EUR
Wind Parks Folia SA
Maroussi
Greece
424,000.00
EUR
Maroussi
Greece
389,000.00
EUR
Maroussi
Greece
551,500.00
EUR
Wind Parks Gagari
SA
Wind Parks Goraki
SA
410
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
and sale from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Aurora Distributed
Solar LLC
Enel Energy
Storage Holdings
LLC (formerly EGP
Energy Storage
Holdings LLC)
Enel X North
America Inc.
Aurora Distributed
Solar LLC
100.00% 51.00%
100.00% 100.00%
11.21% 11.21%
100.00% 51.00%
Line-by-line
AFS
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Aurora Distributed
Solar LLC
100.00% 51.00%
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Tradewind Energy
Inc.
100.00% 100.00%
Line-by-line
Whitney Hill Wind
Power Holdings LLC
100.00% 100.00%
Line-by-line
Enel Kansas LLC
100.00% 100.00%
Tradewind Energy
Inc.
Enel Alberta Wind
Inc.
Enel Green Power
Canada Inc.
Tradewind Energy
Inc.
100.00% 100.00%
0.10%
99.90%
100.00%
100.00% 100.00%
Line-by-line
Line-by-line
Enel North America
Inc.
100.00% 100.00%
Line-by-line
Line-by-line
Equity
Equity
Equity
Equity
Equity
Tradewind Energy
Inc.
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
100.00% 100.00%
100.00% 100.00%
30.00% 30.00%
30.00% 30.00%
30.00% 30.00%
30.00% 30.00%
30.00% 30.00%
Consolidated Annual Report 2019 Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
Wind Parks Gourles
SA
Wind Parks Kafoutsi
SA
Wind Parks Katharas
SA
Wind Parks Kerasias
SA
Wind Parks Milias
SA
Wind Parks Mitikas
SA
Wind Parks Petalo
SA
Wind Parks Platanos
SA
Wind Parks Skoubi
SA
Wind Parks Spilias
SA
Wind Parks
Strouboulas SA
Wind Parks Vitalio
SA
Wind Parks Vourlas
SA
Maroussi
Greece
555,000.00
EUR
Maroussi
Greece
551,500.00
EUR
Maroussi
Greece
768,648.00
EUR
Maroussi
Greece
935,990.00
EUR
Maroussi
Greece
1,024,774.00
EUR
Maroussi
Greece
772,639.00
EUR
Maroussi
Greece
575,000.00
EUR
Maroussi
Greece
625,467.00
EUR
Maroussi
Greece
472,000.00
EUR
Maroussi
Greece
847,490.00
EUR
Maroussi
Greece
576,500.00
EUR
Maroussi
Greece
361,000.00
EUR
Maroussi
Greece
554,000.00
EUR
Winter’s Spawn LLC Minneapolis
USA
-
USD
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Electricity generation
from renewable
resources
Equity
Equity
Line-by-line
Line-by-line
Line-by-line
Line-by-line
Equity
Line-by-line
Equity
Line-by-line
Equity
Equity
Equity
Line-by-line
Wkn Basilicata
Development Pe1 Srl
Rome
Woods Hill Solar LLC Wilmington
Italy
USA
10,000.00
EUR
Renewable energy
Line-by-line
-
USD
Renewable energy
Line-by-line
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas Wind Parks
South Evia SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
Enel Green Power
Hellas SA
30.00% 30.00%
30.00% 30.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
100.00% 100.00%
30.00% 30.00%
100.00% 100.00%
30.00% 30.00%
100.00% 100.00%
30.00% 30.00%
30.00% 30.00%
30.00% 30.00%
Chi Minnesota Wind
LLC
Enel Green Power
SpA
Stillwater Woods Hill
Holdings LLC
51.00% 51.00%
100.00% 100.00%
100.00% 100.00%
WP Bulgaria 1
EOOD
WP Bulgaria 10
EOOD
WP Bulgaria 11
EOOD
WP Bulgaria 12
EOOD
WP Bulgaria 13
EOOD
WP Bulgaria 14
EOOD
WP Bulgaria 15
EOOD
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
411
Attachments Company name
Headquarters
Country
Share capital
Currency Activity
Consolidation
method
Held by
%
holding
Group %
holding
WP Bulgaria 19
EOOD
WP Bulgaria 21
EOOD
WP Bulgaria 26
EOOD
WP Bulgaria 3
EOOD
WP Bulgaria 6
EOOD
WP Bulgaria 8
EOOD
WP Bulgaria 9
EOOD
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Sofia
Bulgaria
5,000.00
BGN
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Plant construction,
operation and
maintenance
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
100.00% 100.00%
Line-by-line
Enel Green Power
Bulgaria EAD
Enel Green Power
España SL
100.00% 100.00%
100.00% 70.10%
Xaloc Solar SLU
Valencia
Spain
3,000.00
EUR
Photovoltaic systems
Line-by-line
Yacylec SA
Buenos Aires
Argentina
20,000,000.00
ARS
Electricity transmission Equity
Enel Américas SA
33.33% 19.09%
Yedesa-
cogeneración SA
Almería
Spain
234,394.72
EUR
Cogeneration of electricity
and heat
Equity
Enel Green Power
España SL
40.00% 28.04%
YouSave SpA
Bergamo
Italy
500,000.00
EUR
Testing, inspection and
certification services,
engineering and
consulting services
Line-by-line
Enel X Italia SpA
100.00% 100.00%
Zacapa HoldCo Sàrl
Luxembourg
Luxembourg
300,000.00
Zacapa LLC
Wilmington
USA
1,000.00
Zacapa Sàrl
Luxembourg
Luxembourg
300,000.00
Zacapa Topco Sàrl
Luxembourg
Luxembourg
250,000.00
Zoo Solar Project
LLC
Andover
USA
-
USD
USD
USD
USD
USD
-
-
-
-
Equity
Equity
Equity
Equity
Electricity generation
from renewable
resources
Line-by-line
Zacapa Topco Sàrl
100.00% 20.60%
Zacapa Sàrl
100.00% 20.60%
Zacapa HoldCo Sàrl
100.00% 20.60%
Enel X International
Srl
Tradewind Energy
Inc.
20.60% 20.60%
100.00% 100.00%
412
Consolidated Annual Report 2019 Concept design and realization
HNTO - Gruppo HDRÀ
Copy editing
postScriptum di Paola Urbani
Printing
Varigrafica Alto Lazio
Print run: 10 copies
Published in June 2020
INSIDE PAGES
Paper
Fedrigoni Freelife Cento
Weight
120 g/m2
Number of pages
414
COVER
Paper
Fedrigoni Freelife Cento
Weight
300 g/m2
This publication is printed on FSC® certified 100% paper
This document is an integral part of the annual financial report
referred to in Article 154-ter, paragraph 1, of the Consolidated
Law on Financial Intermediation (Legislative Decree 58
of February 24, 1998).
Publication not for sale
By
Enel Communications
Disclaimer
This Report issued in Italian
has been translated into
English solely for the convenience
of international readers
Enel
Società per azioni
Registered Office 00198 Rome - Italy
Viale Regina Margherita, 137
Stock Capital Euro 10,166,679,946 fully paid-in
Companies Register of Rome and Tax I.D. 00811720580
R.E.A. of Rome 756032 VAT Code 00934061003
© Enel SpA
00198 Rome, Viale Regina Margherita, 137
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